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.

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