Ircon International (₹93.2)
Bull flag breakout
Ircon International’s share, which was consolidating between ₹80 and ₹87 since May, broke out of the range last week. This move has confirmed a bull flag pattern on the daily chart and at this juncture, the probability of a rally is high. Also, considering that the overall trend has been up over the past one year, the situation is favourable for the bulls.
According to the flag pattern, the stock is likely to touch ₹120 in the short run. Hence, one can go long in Ircon International at the current level of ₹93.2 and add more longs if the price moderates to ₹87. Initial stop-loss can be at ₹78. When the price goes above ₹100, alter the stop-loss to ₹95. Tighten the stop-loss further to ₹105, when the stock rallies to ₹110. Book profits at ₹120.
Also read: Nifty 50, Sensex: Nearing their top
Solar Industries India (₹3,775.3)
At a strong base
Solar Industries India’s share price has been stuck between ₹3,640 and ₹4,000 since February. But a fortnight ago, the stock slipped below the support at ₹3,640. However, it quickly recovered and closed the week above the support at ₹3,640 and ended up forming a bullish pin bar on the weekly chart. As it stands, the likelihood of a rally looks high.
Although ₹4,000 is a resistance, we expect the stock to appreciate to ₹4,200 this time. Hence, we suggest buying the shares of Solar Industries now at ₹3,775 and accumulate more on a dip to ₹3,670. Place initial stop-loss at ₹3,425. When the price rises above ₹4,000, tighten the stop-loss to ₹3,875 and protect some profits. Exit completely at ₹4,200.
Sterling and Wilson Renewable Energy (₹365)
Confirms inverse H&S
Sterling and Wilson Renewable Energy’s stock was lacking direction since May and continued to stay sideways. But now, the stock has got a positive impetus as it broke out of an important barrier at ₹337 last week. This has turned the outlook positive for the scrip. Moreover, the breach of the resistance at ₹337 has also confirmed an inverse head and shoulder chart pattern on the weekly chart. While this pattern hints at an upside to ₹415, we anticipate that the price could touch ₹450.
Therefore, one can consider initiating fresh long positions in the stock now at around ₹365. Buy more shares if the price softens to ₹337. Place stop-loss at ₹300 initially; modify it to ₹395 when the stock surpasses ₹415. Exit at ₹450.