Chart Check from Angel Broking for Tuesday, March 20: Glaxo, Arvind

We have compiled technical recommendations from Shardul Kulkarni, Senior Technical Analyst, Angel Broking for 1-2 weeks.

Glaxo Smithkline is a 'BUY' call with a target of Rs 2235 and a stop loss of Rs 2115

Justification - The stock has managed to close convincingly above its “200 - day SMA” after August 5, 2011. Also, the volumes have picked up significantly since last 4 - 5 trading sessions.

At present, the stock has a stiff resistance of “Horizontal Line” near ` 2155 level. However, looking at the placement of daily “Stochastic” oscillator, we can expect a breakout from this resistance level.

Thus, we advise buying this stock ONLY above ` 2155 for a target of ` 2235 in coming 1 - 2 weeks.

GLAXO SMITHKLINE (NSE cash) Daily Chart:

Arvind Limited is a 'SELL' call with a target of Rs 74.50 and a stop loss of Rs 84.75.

Justification - On Daily chart, the stock is hovering around its “Upward Trend Line” support of ` 81.50. The “RSI” momentum oscillator on the daily chart has dropped below 50 mark, which is sign of weakness. In addition, the stock is also trading well below its short term moving average combination of “5 & 20 EMA”.

Above technical evidences indicates possibility of a breakdown from the mentioned support level of ` 81.50. Thus, sell this stock ONLY below ` 81.25 for a target of ` 74.50 in coming 1 - 2 weeks.

ARVIND LIMITED (NSE cash) Daily Chart: