L&T Finance (₹166.1)
Retraces to a base
The stock of L&T Finance, after breaking out of the resistance at ₹177 in June, marked a multi-year high of ₹194.20 in July. But then, the bulls lost traction and the price began to moderate. Last week, it closed at ₹166. The chart shows that the scrip is now approaching a support at ₹162.
At this level, a couple of trendlines and the 200-day moving average lie, making it a potential floor against which the bulls can regain traction. Participants can buy L&T Finance now at ₹166. Place a stop-loss at ₹158. When the price goes up to ₹177, modify the stop-loss to ₹160. When the stock rises to ₹185, tighten the stop-loss to ₹172. Exit the longs at ₹192.
The Phoenix Mills (₹3,361.6)
Testing a support
The stock of The Phoenix Mills has been appreciating steadily since April last year. However, after hitting a high of ₹4,136.30 last month, the scrip changed direction and started to fall. It closed at ₹3,360 last week. But the chart shows that there is a strong trendline support at the current level. Also, ₹3,200 is a good base. So, the probability of a rally from here is high.
We suggest initiating longs at the current market price. Accumulate if the price dips to ₹3,200. Place initial stop-loss at ₹3,050. When the stock touches ₹3,650, revise the stop-loss to ₹3,400. Tighten the stop-loss further to ₹3,650 when the price rises to ₹3,870. Book profits at ₹4,100.
RBL Bank (₹216.65)
At a demand zone
RBL Bank’s stock has been depreciating over the past month. However, it is now hovering around a support. The price region between ₹210 and ₹215 is a good demand zone. Notably, this level has been holding well for little over a year. While this does not indicate that the long-term trend is turning bullish, we expect the stock to recover to the nearest notable resistance at ₹270 in the short term.
So, traders can buy RBL Bank now at ₹217. Place a stop-loss at ₹200. When the price rises to ₹240, revise the stop-loss to ₹220. On a rally to ₹260, trail the stop-loss further up to ₹245. Liquidate the longs at ₹270. Risk-averse traders can refrain from taking this position.
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.