ABFRL (₹349.1)

Flying high

The stock of Aditya Birla Fashion and Retail Ltd (ABFRL), which rallied past the resistance band of ₹310-320 a couple of weeks ago, faced sell-off early last week. However, ₹320 offered good support on the back of which the stock rose. It is able to sustain above ₹310-320 region and it has rallied although the broader market has come under pressure of late. Thus, we have a positive outlook on this stock and can be a good medium-term buy candidate.

But one should be prepared for a retest of ₹320. Given the above factors, we suggest going long at the current level of ₹349 and buy more if price moderates to ₹320. Primary stop-loss can be at ₹300. Shift the stop-loss up to ₹350 when the stock goes above ₹375. Adjust it upwards to ₹370 when price touches ₹390. Exit all the longs at ₹400.

Cochin Shipyard (₹441)

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Steady uptrend

The rally in the stock of Cochin Shipyard, which has been in place since mid-June, gained traction in August. Volume has been higher over the past month, denoting a steady uptrend. Now that the stock has moved past the important ₹400-mark, the trend is expected to remain bullish over the medium-term. Consequently, it is likely to appreciate to ₹580. But there could be a correction to ₹400 before the stock breaks out of ₹500.

So, one can buy the stock worth three-fourth of the planned amount now at around ₹441. Use the remaining one-fourth amount to buy if there is a dip to ₹405. Keep stop-loss at ₹370 initially. On a rally to ₹515 exit one-third of the quantity that you hold and alter the stop-loss to ₹475. Move stop-loss to ₹520 when the stock touches ₹550. Exit remaining longs at ₹580.

Thermax (₹2,169.5)

Bounce on the cards

The stock of Thermax has posted a second straight weekly loss. However, the overall uptrend stays valid, and the scrip is currently near the critical support of ₹2,150 where a rising trendline coincides with the 20-week moving average. Therefore, we anticipate a bounce from here which can take the stock at least to ₹2,600 within a quarter. From a trading perspective, it is a very good risk-reward preposition.

Therefore, our recommendation is to buy the stock at current level and accumulate more in case the price softens to ₹2,065. Place initial stop-loss at ₹1,980. When the stock rallies past ₹2,400, move the stop-loss up to ₹2,275. Tighten it further to ₹2,400 when price is above ₹2,500. Liquidate all the longs at ₹2,585 because the price band of ₹2,585-2,680 is a considerable resistance against which the price could decline.

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