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.