Brigade Enterprises (₹1,249.6)
At a strong base
The stock of Brigade Enterprises has been on a downswing since early July. It fell off the resistance at ₹1,450. But the decline was stopped by the support at ₹1,180. Two trendlines meet at this level, making it a strong base. A rebound in the last two sessions, on the back of ₹1,180, hint at arrival of fresh buyers. Since the broader trend is bullish and the stock is hovering near a support, the probability of a rally is high.
An upswing from here can lift the stock beyond the prior high and take it to ₹1,600 over the next few weeks. So, traders can go long now at ₹1,250 and accumulate if the price dips to ₹1,180. Place stop-loss at ₹1,100. When the price rises above ₹1,450, modify the stop-loss to ₹1,300. When the stock touches ₹1,550, raise the stop-loss further to ₹1,480. Liquidate the longs at ₹1,600.
Laurus Labs (₹448.8)
Bounces off a support
Laurus Labs’ stock has been moving along an upward channel since April 2023. It depreciated after facing a barrier at ₹480 early this month. But last week, the stock touched the lower band of the channel and rebounded strongly towards the end of the week. The price action indicates that the stock can appreciate from here. It shows a potential to touch ₹600 in the short term.
Therefore, initiate longs now at around ₹450 and accumulate if the price moderates to ₹425. Keep stop-loss at ₹380. When the stock rallies to ₹500, revise the stop-loss up to ₹465. Tighten the stop-loss further to ₹520 when the price touches ₹550. Liquidate the positions at ₹600.
Muthoot Finance (₹1,785.8)
Set to resume rally
Muthoot Finance’s stock has been gradually appreciating since April last year. It established an uptrend on the back of the support at ₹920. Recently, the stock price fell after facing a resistance at ₹1,860. But ₹1,700 offered support and arrested the decline. A trendline support lies at this level too. Notably, the scrip has bounced off this trendline several times so far this year.
We expect the scrip to begin the next leg of uptrend from here, which can take it to ₹1,950 in the short run. So, traders can buy at ₹1,785 and add more shares if the price dips to ₹1,720. Place stop-loss at ₹1,640. When the stock touches ₹1,860, move the stop-loss up to ₹1,760. When the price hits ₹1,900, tighten the stop-loss to ₹1,840. Book profits at ₹1,950.