AU Small Finance Bank (₹703.3)
Set to extend the upside
The stock of AU Small Finance Bank has posted consecutive gains for the past three weeks. This indicates strong buying interest. The recent rally has resulted in the price moving above a barrier at ₹680 last week. While there is a chance for the price to see a corrective dip from here, we expect the stock to eventually appreciate to ₹800 in the near term.
The moderation in price can take the stock to ₹650. Therefore, traders can go long on AU Small Finance Bank at ₹700 and accumulate if the price softens to ₹650. Place initial stop-loss at ₹590. When the stock hits ₹750, revise the stop-loss upwards to ₹700. On a rally to ₹775, tighten the stop-loss further to ₹750. Liquidate the longs at ₹800.
KNR Constructions (₹353.15)
Retests a support
The stock of KNR Constructions has depreciated over the last month. It fell after marking a record high of ₹415 towards the end of July. But the price action over the past two weeks shows that the downtrend is losing momentum. Also, there is a good support at ₹330. Since the broader trend is bullish and the stock is now hovering around a base, the probability of a rally from here is high.
We anticipate a resumption of the uptrend where the price can hit ₹450. So, participants can buy the shares of KNR Constructions at ₹350. Accumulate if the price dips to ₹330. Place stop-loss at ₹300. When the stock hits ₹400, tighten the stop-loss to ₹375. Move the stop-loss to ₹400 when the stock touches ₹425. Exit at ₹450.
SBI Cards and Payment Services (₹800.4)
Trend turns bullish
The trend for the stock of SBI Cards and Payment Services has been bearish since October 2021. Nevertheless, since early-2024, the price was largely charting a sideways trend. The scrip was oscillating between ₹685 and ₹780. Against this backdrop, the bulls gained considerable traction last week, lifting the stock above the key ₹780-mark.
Also, it has breached a long-term trendline resistance at ₹670. These are solid indications of bullish reversal. So, one can buy now at ₹800. Buy more shares if the price dips to ₹740. Keep the stop-loss at ₹670. When the price touches ₹850, revise the stop-loss to ₹780. When the price touches ₹930, alter the stop-loss to ₹890. Book profits at ₹975.