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KNR Constructions (₹318.2)
Breaks out of a range
The stock of KNR Constructions broke out of a resistance at ₹290 last week, turning the outlook bullish. Since April 2022, it has largely been charting a sideways trend between ₹225 and ₹290. So, the breach of the resistance at ₹290 holds significance and indicates that the bulls are back in the game. While there is a chance for the price to see a dip to ₹290 from here, we expect the stock to eventually recover and move to ₹400 in the near term.
Therefore, traders can buy the stock of KNR Constructions at the current level of ₹318. Accumulate if the price dips to ₹290. Place initial stop-loss at ₹250. When the stock rises past ₹340, raise the stop-loss to ₹315. Further tighten the stop-loss to ₹350 when the stock touches ₹375. Exit at ₹400.
Oil India (₹635.4)
At a strong support
Oil India’s stock saw a sharp rise in price in 2024. But after appreciating to ₹650 in March, the uptrend lost steam. However, the trend did not reverse and the stock was tracing a horizontal trend. A couple of weeks ago, the scrip broke out of the resistance at ₹650. On the daily chart, the price action shows a triangle pattern breakout. So, the fall in price over the past week is likely to be a corrective one.
The stock is now trading near a strong support. The probability of a rally from here is high. Traders can go long on Oil India now at ₹635. Buy more shares if the price softens to ₹615. Place stop-loss at ₹585. When the stock surpasses ₹680, alter the stop-loss to ₹620. When the price hits ₹750, raise the stop-loss further to ₹680. Book profits at ₹850.
Tata Steel (₹167.2)
Likely to see a bounce
The stock of Tata Steel has been rallying steadily over the past year. In May 2023, it established an uptrend on the back of the support at ₹100. But after registering a record high of ₹178 last week, the price dropped. However, the downswing appears to be a minor correction within the broader uptrend. The stock is currently hovering around the 50-day moving average and notably, it has bounced off this average several times in 2024.
So, the likelihood of a recovery from here is high. Hence, participants can buy Tata Steel now at ₹167. Buy more in case the price dips to ₹162. Keep initial stop-loss at ₹155. When the stock goes above ₹180, move the stop-loss up to ₹168. On a rally to ₹190, tighten the stop-loss to ₹180. Liquidate the longs at ₹200.
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