CG Power and Industrial Solutions (₹727)
Steady uptrend
The stock of CG Power and Industrial Solutions has been in a steady long-term uptrend. But after making a record high of ₹783.60 last week, the price moderated. However, this has not changed the bullishness. The fall is likely to be a temporary correction. Notably, the stock has rebounded from the 20-day moving average several times in the past few months.
It is now nearing this average, which is at ₹715. So, the chances for an upswing from here is high. Participants can initiate fresh longs in this stock now at ₹727. Accumulate if the price dips to ₹680. Place initial stop-loss at ₹640. Move this up to ₹720 when the stock surpasses ₹785. Move the stop-loss further up to ₹785 when the price touches ₹820. Exit at ₹840.
Mangalore Refinery & Petrochemicals (₹240.4)
Signs of upward reversal
The stock of Mangalore Refinery & Petrochemicals was moving in the sideways range of ₹200-225 since May this year. Last week, it broke out of this range, opening the door for further appreciation. The stock also surpassed a trendline resistance, increasing the odds for a rally from here.
While there might be a minor correction from the current market price, we expect the stock to eventually appreciate to ₹300 over the next few months. So, one can buy this stock now at ₹240. Accumulate if the price dips to ₹225. Place stop-loss at ₹195. When the stock rises above ₹260, trail the stop-loss to ₹240. Raise the stop-loss further to ₹265 when the stock hits ₹280. Liquidate the longs at ₹300.
Vardhman Textiles (₹521.70)
Bulls gain further traction
Vardhman Textiles’ stock has been appreciating steadily since May 2023 after it formed a base at ₹280. Currently hovering around ₹520, the stock is staring at a resistance at ₹560. So, there could be a correction either from the current level or after extending the rally to ₹560. A corrective decline can drag the stock to ₹470. Post this move, we expect the stock to resume the upward trajectory, which can potentially lift the stock to ₹700.
Therefore, participants can go long now at ₹520 and buy more shares if the price dips to ₹470. Place the stop-loss at ₹400. When the stock gets past ₹560, alter the stop-loss to ₹520. Tighten the stop-loss further to ₹600 when the price hits ₹630. Book profits at ₹700.