Comments
Cyient (₹926)
Signs of trend reversal
The downtrend in the stock of Cyient Ltd, which began in October last year, was arrested by the support at ₹730 in July. It bounced off this level in November after consolidation and it broke out of the hurdle at ₹875 a fortnight ago, indicating a bullish trend reversal. While the stock shows strength to rally up to ₹1,075 in the near term, we might see a minor correction off the resistance at ₹950.
Therefore, traders can buy the stock of Cyient at the current level of ₹926 and purchase more shares if there is a price dip to ₹875. Place stop-loss at ₹810. When the price rises above ₹1,000, shift the stop-loss to ₹940. Further tighten the stop-loss to ₹1,020 when price touches ₹1,050. Book profits at ₹1,075.
Firstsource Solutions (₹121.8)
Breaks out of a range
The stock of Firstsource Solutions has been consolidating between ₹98 and ₹116 since May last year. Prior to this, it saw a decline which began at ₹240 in July 2021. So, the overall price action – a fall followed by a horizontal trend and then breaking out of it – shows that the stock has set itself up for a rally. The bulls are expected to pick up momentum in the coming weeks and are likely to take the stock to ₹160 in about six months.
That said, given the scrip has rallied for two weeks in a row, there is a slight chance for a minor decline to ₹110 before establishing the next leg of upswing. So, buy now at around ₹122 and also on a dip to ₹110. Place stop-loss at ₹98 initially and shift it to ₹125 when the stock moves past ₹140. Exit at ₹160.
Trent (₹1,328)
Resumes uptrend
The stock of Trent Ltd, which corrected from about ₹1,550 to ₹1,185 between November 2022 and January 2023, has seen a rebound, as ₹1,185 acted as a good base. A rising trendline coincides at ₹1,185, making it a strong support. Thus, the stock is showing hints of a resumption of the uptrend with a potential to rally to ₹1,650 in two-three months.
Therefore, traders and investors looking for medium-term opportunities can go long in this stock at the current level of ₹1,328. Add more longs if price softens to ₹1,260. Keep stop-loss at ₹1,120 initially and lift it to ₹1,350 when the stock touches ₹1,500. Thereafter, alter the stop-loss to ₹1,485 when price goes above ₹1,580. Exit the longs at ₹1,650.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.