Bata India (₹1,481.3)
Makes a U-turn
The stock of Bata India was charting a narrow horizontal trend between ₹1,380 and ₹1,440 since mid-February this year. Last week, it broke out of ₹1,440 indicating that the trend has turned bullish. In the coming weeks, the stock will most likely extend the rally and touch ₹1,650. But before that, from the current level, we might see a minor dip in price towards ₹1,450.
Considering this, traders can go long now at around ₹1,481. Add more longs when price dips to ₹1,450. Place initial stop-loss at ₹1,375. When the stock rallies past ₹1,550, alter the stop-loss to ₹1,500. Thereafter, when the price touches ₹1,600, liquidate one-third of the longs. Move the stop-loss upward to ₹1,560 for the rest of the holdings. Exit the remaining positions at ₹1,650.
IndiaMART InterMESH (₹5,245.2)
Sees bullish trend reversal
A fortnight ago, the stock of IndiaMART InterMESH broke out of a crucial resistance at ₹5,000. This has given a confirmation of a bullish trend reversal. Although the stock saw a minor decline over the past week, it largely appears to be a corrective one. Thus, we expect the stock to resume the uptrend this week.
Over the medium term, the stock has the potential to hit ₹6,350. But note that there is a chance for the price to dip to ₹5,000 from here before rallying. So, one can buy now at around ₹5,245. Accumulate if the price drops to ₹5,020. Keep initial stop-loss at ₹4,780. When the stock moves above ₹5,800, revise the stop-loss to ₹5,500. Once the stock touches ₹6,000, exit one-third of the total longs. Tighten the stop-loss to ₹5,750 for the rest of the holdings. Liquidate the remaining longs at ₹6,300.
SBI Life Insurance (₹1,106.50)
Likely to resume the fall
The stock of SBI Life Insurance has been witnessing a recovery in the past few weeks after a fall. It took support at ₹1,055 in mid-March and has recovered to the current level of ₹1,106.50. However, there is a strong resistance at ₹1,160. Also, the trend has been bearish this year. So, we expect the stock to resume the downtrend this week as the bears seem to regain traction. From here, the stock could decline to the key support at ₹1,000.
Given the prevailing price action, we recommend going short on this stock at the current level of about ₹1,106. Add more shorts if the price rallies to ₹1,140. Place stop-loss at ₹1,180 at first. Revise it down to ₹1,105 when price declines below ₹1,050. Further tighten the stop-loss to ₹1,060 when the stock drops to ₹1,030. Book profits at ₹1,010.