Ashoka Buildcon (₹92.8)
Set to rebound
Ashoka Buildcon’s stock, since March last year, has been charting a sideways trend. It was largely oscillating between ₹72 and ₹92. But a month ago, it broke out of the range on the upside, thereby turning the outlook positive. However, over the last couple of weeks, the stock was not able to rally past ₹107. In fact, the price dropped below ₹100 last week.
Yet, the resistance-turned-support at ₹92 remains valid and the probability is high for the stock to bounce off this level. It is highly likely that the stock will retest ₹107 in a week or two. So, buy now at around ₹93 and add more longs in case the price slips to ₹88. Initial stop-loss can be at ₹84. When the stock moves up and reaches ₹100, modify the stop-loss to ₹96. Book profits at ₹105.
Bata India (₹1,646.1)
Testing a support
Bata India’s share price started to rise steadily from mid-April. By then, the stock had found a support at around ₹1,400 and rebounded. But after hitting an eight-month high of ₹1,771.45 last week, it witnessed a fall. Nevertheless, the uptrend has not been invalidated. We expect the stock to resume the uptrend from the current level or after extending the decline a bit more to ₹1,600.
Therefore, we suggest going long on Bata India at the current level of ₹1,646. Accumulate more shares if the price dips to ₹1,600. Keep initial stop-loss at around ₹1,565. When the stock moves above ₹1,700, alter the stop-loss to ₹1,650. Move the stop-loss further up to ₹1,690 when the stock touches ₹1,735. Exit at ₹1,760.
Carborundum Universal (₹1,082.3)
Corrective fall nearing the end
Carborundum Universal’s stock began its latest leg of uptrend in June 2022 after taking support at ₹660. It hit a fresh lifetime high of ₹1,300 a fortnight ago. But then, it saw a considerable fall last week. Despite this, the overall bull trend remains intact. Also, the stock is now trading near a strong trendline support at ₹1,060. Immediately below this is another support at ₹1,000.
We anticipate the stock to resume the uptrend and retest ₹1,770. So, buy the stock at the current level of ₹1,082. Buy more in case the price falls to ₹1,025. Keep the stop-loss at ₹975 at first. Trail it to ₹1,100 when the price rallies above ₹1,160. Tighten the stop-loss further to ₹1,160 when the stock touches ₹1,200. Liquidate at ₹1,240.