Chart Check from Angel Broking for Tuesday, February 07: Uflex, Tata Steel

We have compiled technical recommendations from Shardul Kulkarni, Senior Technical Analyst, Angel Broking for 5-7 trading sessions.

Buy Uflex with target price of Rs 158 and a stop loss of Rs 130

Justification: On Friday’s session, the stock has given a downward sloping trend line breakout at Rs.136 with a significant rise in volumes. Also, the stock has managed to close convincingly above “20-week EMA” after August 12, 2011, which is a sign of strength.

The placement of moving averages and momentum oscillators suggest the uptrend to continue. Thus, buy this stock on declines up to Rs.136 for a target of Rs.158 in coming 3-4 weeks.

UFLEX (NSE cash) Daily Chart:

Tata Steel is a 'Sell' call with a target of Rs 438 and a stop loss of Rs 475.25

Justification: On Daily chart, the stock is facing resistance near 161.8% Fibonacci retracement level of the fall from December 2, 2011 to January 2, 2012. In addition, we are witnessing a negative divergence in daily "RSI" momentum oscillator coupled with the negatively poised "Stochastic" oscillator. Thus, sell this stock ONLY below Rs. 463 for a target of Rs.438 in coming 4 - 5 trading sessions.

Tata Steel (NSE cash) Daily Chart: