ICICI Lombard General Insurance Company (₹1,437.3)
Confirms bull flag pattern
The stock of ICICI Lombard General Insurance Company broke out of the range of ₹1,315-1,415 a fortnight ago. This has confirmed a bull flag pattern on the daily chart, a positive signal. As per this chart setup, the stock is likely to rally to ₹1,770. However, there is a strong resistance between ₹1,600 and ₹1,650. We expect the stock to see a minor dip to ₹1,415 from here and then appreciate to ₹1,600 in the near future.
So, one can buy this stock now at ₹1,437 and accumulate on a dip to ₹1,415. Initial stop-loss can be at ₹1,350. When the stock touches ₹1,530, modify the stop-loss to ₹1,480. Tighten it further to ₹1,530 when the price rallies to ₹1,570. Book profits at ₹1,600.
Sonata Software (₹1,293.6)
Corrective fall largely over
Sonata Software stock has been steadily appreciating since early 2023. It established the rally on the back of the support at ₹530. But last week, after marking a high of ₹1,407.6, the price moderated. But the overall trend remains bullish. We anticipate the stock to resume the rally from the current level or after moderating further to ₹1,215.
The scrip has the potential to rise to ₹1,525. Buy Sonata Software stock now at ₹1,294 and buy more shares if the price dips to ₹1,215. Place stop-loss at ₹1,125. Trail this to ₹1,350 when the price increases to ₹1,420. On a rally to ₹1,480, exit half of the longs that you hold. Then, revise the stop-loss to ₹1,430 for the remaining holdings. Liquidate them at ₹1,525.
Zomato (₹113.2)
Key supports ahead
Zomato stock started to rally in April after finding support at ₹50. It hit a 52-week high of ₹126.1 early this month. But then, the stock price declined to close at ₹113.2 last week. Nevertheless, the trend is bullish and the stock has key supports ahead. Zomato’s price has already reached a support zone between ₹110 and ₹116.
Besides, a rising trendline and the 50-day moving average coincide at ₹110, making the base stronger. So, we expect the stock to resume the bull trend. Buy now at around ₹113 and accumulate at ₹110. Keep stop-loss at ₹98. Lift this to ₹118 when the price touches ₹126. Raise the stop-loss further to ₹128 when the stock reaches ₹135. Exit at ₹145.