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Coforge (₹4,731.35)
At a demand zone
Coforge’s stock has been in a sharp downtrend since February this year. It fell off the resistance at ₹6,800. The stock has depreciated about 25 per cent so far this month. But a couple of weeks ago, the stock saw a recovery on the back of the support at ₹4,300. Interestingly, a long-term trendline coincides at this level, making it a potential demand zone.
There is a good chance for the stock to see at least a corrective rally, if not a bullish reversal. We expect the upswing to go up to ₹5,300. So, one can buy the stock of Coforge now at ₹4,731. Buy more shares if the price dips to ₹4,400. Place initial stop-loss at ₹4,200. When the price rises past ₹5,000, alter the stop-loss to ₹4,750. Book profits at ₹5,300.
IRFC (₹173.20)
Marks higher high
The stock of Indian Railway Finance Corporation (IRFC) has been appreciating over the past couple of weeks. The support at ₹120 helped the stock arrest the decline and establish an uptrend. On Friday, it broke out of a barrier at ₹160, thus making a higher high. The chart indicates potential for further appreciation. We anticipate the stock to surpass the prior high of ₹192.80, made in January, and touch ₹200.
That said, there might be a minor moderation in price to ₹150 from here before the next leg of rally. So, one can buy now at ₹173 and accumulate, if the price declines to ₹155. Place initial stop-loss at ₹140. When the stock surpasses ₹180, tighten the stop-loss to ₹168. Liquidate the longs at ₹200.
Nestle India (₹2,502.20)
Finds a solid base
The stock of Nestle India has remained bearish since the beginning of 2024. Year-to-date, it has lost about 8 per cent. However, it is now trading near the 200-day moving average, which is at ₹2,430. Just below this is a support at ₹2,410. Notably, on the back of this level, Nestle’s stock has bounced off several times since December last year.
Therefore, going ahead, we expect another rebound from this level, which can potentially lift the price to ₹2,625 in the medium term. So, traders can go long on Nestle India now at ₹2,502 and accumulate, if the price dips to ₹2,410. Place initial stop-loss at ₹2,330. When the price rises above ₹2,550, tighten the stop-loss to ₹2,480. Exit the position at ₹2,600.
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