Movers and Shakers: Stocks that will see action this week

Jubilant Foodworks ( ₹3,434.2)

Breaches a key base

The stock of Jubilant Foodworks, which witnessed a sharp fall in October, had formed a good base at ₹3,600. However, last week, on the back of renewed downward momentum, the stock breached the support at ₹3,600. Thus, going forward, the stock is likely to see further depreciation. While the nearest notable support is at ₹3,215, given the momentum, the scrip is likely to fall below this level and touch ₹3,000 within a couple of months. Note that ₹3,000 is a strong support from where there could be a rebound. One can short the stock at current price and sell more if it rallies to ₹3,600. Place stop-loss at ₹3,720. Book 50 per cent of profit at ₹3,215. Thereafter, modify stop-loss to ₹3,400 and exit the remaining at ₹3,020.

IndiaMART InterMESH (₹6,448.9)

Slips below strong support

The stock of IndiaMART InterMESH has been losing steam after hitting an all-time high of ₹9,950 in February this year. While ₹7,000 was proving to be solid support, the bears dragged the stock decisively below this level last week. The downtrend appears very strong and the likelihood of the stock falling further is high. Nearest support can be spotted at ₹5,000. Notably, ₹5,400 can be an intermediate support. Yet, before tumbling to these levels, the stock could see a minor rise. Hence, one can short at current levels and on a rise to ₹6,960 with initial stop-loss at ₹7,530. When the stock falls to ₹5,400, book 60 per cent of the positions and revise stop-loss to ₹5,900. Exit the remaining shorts at ₹5,000.

ACC (₹2,126)

Short-term trend negative

Ever since hitting a lifetime high of ₹2,589 in mid-November, the stock of ACC has been depreciating. Consequently, last week it closed below the key support of ₹2,200, turning the near-term trend downwards. So, despite the long-term trend being positive, the stock can be expected to extend the corrective decline. Nevertheless, the price could touch ₹2,200 before further decline. Nearest support is at ₹2,060. But the stock is likely to drop below this level and also the psychological ₹2,000-mark to touch ₹1,900 on the downside within a month. Therefore, traders can initiate fresh short at current levels and add more shorts when price moves up to ₹2,200. Place stop-loss at ₹2,300. When the stock slips below ₹2,040, revise the stop-loss downwards to ₹2,160. Liquidate all the shorts when you see a dip to ₹1,900.

Tech Mahindra (₹1,723.8)

Hits fresh lifetime high

The stock of Tech Mahindra is in a long-term uptrend. But since August this year, it lost the momentum. Although the scrip has been appreciating, the uptrend started looking weak. However, last week, the stock showed renewed momentum and, going forward, it could see another leg of rally from current levels. The RSI and the MACD on the daily chart are showing fresh uptick. Considering that the stock could retest the resistance-turned-support level of ₹1,675, one can split and initiate fresh buys. That is, traders can go long at current levels and buy more if the price softens to ₹1,675. Keep stop-loss at ₹1,600. On the upside, the stock has the potential to rally to ₹1,900. So, traders can book profit when price rises to this level. Shift stop-loss to ₹1,700 if the stock moves past ₹1,800.