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Amara Raja Batteries (₹684.7)
Cup and saucer pattern
Amara Raja Batteries’ stock broke out of a resistance at ₹660 a couple of weeks ago. This has confirmed a cup and saucer pattern on the weekly chart, indicating that there is more on the upside from the current level of ₹685. While ₹770 is the nearest resistance, the stock will most likely surpass this level to touch ₹800. That said, there is a chance for the price to see a dip to ₹665.
Therefore, one can consider buying now at around ₹685. Accumulate if the price moderates to ₹665. Place initial stop-loss at ₹630. On a rally to ₹730, modify the stop-loss to ₹710. When the stock reaches ₹770, exit one-third of the longs and tighten the stop-loss to ₹750 for the remaining positions. Liquidate the remaining at ₹800.
HPCL (₹287.4)
Set to rebound
Hindustan Petroleum Corporation Ltd’s (HPCL) share price saw a decline over the past week. However, the uptrend, which began at around ₹200 in November last year, is still intact. So, we expect the stock to stop the downswing and see a rebound from the current level of ₹287.4 or after dropping further to ₹275. On the upside, HPCL has the potential to rally to ₹350.
Therefore, one can consider buying now at around ₹287. Accumulate if the price dips to ₹275. Place initial stop-loss at ₹260. When the stock rallies past ₹310, modify the stop-loss to ₹298. When HPCL share price hits ₹330, liquidate 50 per cent of the longs. Then, tighten the stop-loss to ₹318 for the remaining holdings. Exit the leftover at ₹350.
Power Grid (₹240)
Retesting the support
Power Grid’s share price depreciated last week after facing resistance at around ₹255. However, currently trading at around ₹240, the trend has not turned bearish. The stock broke out of ₹240 in early June and as long as this stays true, the bias will be bullish. Also, a rising trendline and 20-week moving average coincide at this level, making it a strong base. So, the chances of a rally are high.
The stock could touch ₹275 in the near term. So, traders can go long on the stock of Power Grid now at around ₹240. Add more longs if the price dips to ₹230. Place stop-loss at ₹220. When the stock moves above ₹265, revise the stop-loss to ₹255. Book profits at ₹275.
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