Comments
Aarti Industries (₹634.6)
Potential bullish reversal
The stock of Aarti Industries faced a resistance at ₹750 in April and the price declined. However, looking at the long-term trend, the recent fall is likely to be only a corrective one. We forecast the stock to resume the rally from the current level. While there might be a minor dip to ₹600, the stock is expected to move up eventually and surpass ₹750 to hit ₹950 in the coming months.
So, buy now at around ₹634 and accumulate at ₹600. Place the stop-loss at ₹540. When the stock rises above ₹700, modify the stop-loss to ₹620. Raise the stop-loss to ₹680 when the price goes beyond ₹770. At ₹850, exit one-third of the holding and alter the stop-loss for the remaining to ₹780. Liquidate the balance at ₹950.
Dr Lal PathLabs (₹2,797.8)
On the verge of a breakout
The stock of Dr Lal PathLabs has been fluctuating in a broad ₹1,820-2,800 price band since March 2022. But the recent rally that began in March this year shows potential for a fresh breakout. Since the stock closed near the range-top last week, we can expect the price to soften a bit, possibly to ₹2,500. But it can resume the upswing, break out of ₹2,800 and head to ₹3,700 over the medium term.
While risk-averse traders can wait for a clear breakout and buy, others can go long now at ₹2,800. Accumulate at ₹2,500. Place stop-loss at ₹2,325. When the stock moves above ₹3,000, raise the stop-loss to ₹2,800. On a rally to ₹3,300, liquidate half of the longs and then modify the stop-loss to ₹3,100. Exit the remaining at ₹3,650.
SRF (₹2,310.2)
Forms bullish pin bar
SRF’s stock, since October 2021, has been tracing a sideways trend. That is, the scrip has been oscillating in the broad range of ₹2,100-2,700. Ideally, the trend is flat. However, there is a short-term opportunity. The stock is now hovering near the bottom of the range and last week, it formed a bullish pin-bar candlestick. These factors increase the chance for a rally from here.
So, we suggest going long on the stock of SRF, now at ₹2,310. Buy more shares if the price dips to ₹2,150. Place stop-loss at ₹2,050. When the price rises past ₹2,430, modify the stop-loss to ₹2,300. Move the stop-loss further up to ₹2,500 when the stock touches ₹2,600. Liquidate the longs at ₹2,670.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.