BPCL (₹391.8)
Rally set to extend
BPCL’s share price has been on a rise, though at a slow pace, since October last year. As the price went up, it breached a resistance at ₹375 last week with good volume. The price action on the daily chart hints at further appreciation in the short term, potentially to ₹430. Therefore, participants can consider buying the stock of BPCL.
Since there is a chance for the price to drop to ₹375 before moving past the ₹400-mark, traders can take positions in two legs – buy now at around ₹392 and accumulate if the price dips to ₹378. Keep a stop-loss at ₹360. When the stock price rises above ₹405, modify the stop-loss to ₹392. Further, tighten the stop-loss to ₹400 when BPCL touches ₹415. Exit at ₹430.
Granules India (₹312)
Bounces off a base
Granules India’s stock, after deprecating between November 2022 and January 2023, started consolidating from February. As it moved sideways, the stock laid a good foundation between ₹275 and ₹280. Against this support, it started appreciating and last week, the scrip closed above a critical barrier at ₹300. This confirmed the bullish reversal.
Although there is potential for the price to rise to ₹380, we expect a quick rally towards a hurdle at ₹345, from where there could be a correction. Hence, traders can go long at the current level of ₹312 and add more longs in case the price falls to ₹302. Place stop-loss at ₹292 initially. When the stock of Granules India surpasses ₹330, revise the stop-loss to ₹315. Liquidate the longs at ₹345.
Suprajit Engineering (₹429.6)
May retest the life-time high
Suprajit Engineering’s stock bounced off the support at ₹315 towards the end of January. It rallied in the following months, but lost momentum after hitting the wall at ₹400 in May. However, over the past two weeks, the stock of Suprajit Engineering gathered enough momentum to lift it above the barrier at ₹400.
Consequently, we anticipate the stock to rally to ₹470 in the near term. So, traders can consider initiating fresh longs in this stock at the current level of ₹430. Buy more shares if the price moves down to ₹418, as this is a good support and a fall below this is less likely. Keep stop-loss at ₹400 initially. Modify the stop-loss to ₹430 when the price rallies to ₹450. Book profits at ₹470.