Movers & Shakers: Stocks that will see action this week

Forecast to rebound

Cummins India’s stock saw a sharp fall in price last week. But this is likely to be only a corrective fall and the broader uptrend stays valid. There is a rising trend-line support at around ₹1,730, where the 20-week moving average also coincides. Once it starts appreciating again, we expect the stock to cross over the ₹2,000-mark and touch ₹2,040.

So, we suggest buying the stock of Cummins India now at around ₹1,795 and accumulate if the price dips to ₹1,740. Place stop-loss at ₹1,650 at first. When the stock goes above ₹1,880, alter the stop-loss to ₹1,800. On a rally to ₹2,000, exit one-third of the positions and tighten the stop-loss for the remaining holdings to ₹1,950. Exit the rest at ₹2,040.

Manappuram Finance (₹134.4)

Breaches a resistance

Manappuram Finance, since June 2022, has been moving up gradually. That said, the stock was facing a resistance at ₹132 since early April this year. However, it broke out of this barrier a fortnight ago and marked a fresh 52-week high of ₹141.1, opening the door for further appreciation. Although the price moderated last week after touching a new one-year high, the stock is anticipated to regain traction and start moving up.

Hence, consider going long on the stock of Manappuram Finance with a stop-loss at ₹124. Once the price rises as we expect and surpasses ₹145, a potential minor hurdle, lift the stop-loss up to ₹138. Tighten the stop-loss further to ₹142 when the stock hits ₹150. Liquidate the longs at ₹155.

Oberoi Realty (₹1,121)

Breakout sustains, likely to rally

Oberoi Realty, since October 2021, had been facing a stiff barrier at ₹1,040. Although the trend never really turned bearish, the bulls were kept at bay by this resistance. But last month, the stock gathered enough momentum to breach ₹1,040 and closed above this level. While there has not been a sharp rally post the breakout, the price action continues to be bullish.

We expect the stock to resume the uptrend soon. So, buy the stock of Oberoi Realty now at ₹1,121 and buy more if the price softens to ₹1,055. Keep initial stop-loss at ₹1,015. When the stock rises above ₹1,150, alter the stop-loss to ₹1,100. Further, tighten the stop-loss to ₹1,140 when the price touches ₹1,180. Book profits at ₹1,200.