Linde India (₹8,223.3)
Sees strong rebound
The stock of Linde India rebounded strongly last week on the back of the support at ₹7,200. Therefore, the corrective decline, which began in July from about ₹9,300, is likely to have come to an end. While there is a chance for the price to dip to ₹7,600 from the current level, the uptrend is intact.
Last week’s bounce has added strength to the bulls with the potential to take the stock up to the psychological ₹10,000-mark. Therefore, traders can buy at ₹8,200 and add longs if the price drops to ₹7,600. Keep stop-loss at ₹6,980. When the price hits ₹9,000, modify the stop-loss to ₹8,300. Raise the stop-loss to ₹9,000 when stock touches ₹9,600. Liquidate the longs at ₹10,000.
Prestige Estates Projects (₹1,857.7)
Signals a breakout
The stock of Prestige Estates Projects has largely been moving sideways since July. On the upside, ₹1,900 blocked the bulls and on the other side, the bears struggled to drag the price below the support at ₹1,670. That said, the price action since August shows that the stock has been making higher highs. The monthly chart suggests good buying between ₹1,750 and ₹1,850.
We expect the stock to break out soon and rally to ₹2,300 in the near term. So, consider buying this scrip at ₹1,850 and on a dip to ₹1,750. Place stop-loss at ₹1,580. When the price rises to ₹2,000, modify the stop-loss to ₹1,880. Revise the stop-loss to ₹2,100 when the stock reaches ₹2,200. Exit at ₹2,300.
Sundram Fasteners (₹1,403.7)
Uptrend set to resume
Sundram Fasteners’ stock broke out of the barrier at ₹1,300 in early July and hit a record high of ₹1,504.10. However, it lost the momentum resulting in price moderation. Nevertheless, the resistance-turned-support of ₹1,300 remains valid and the broader trend is bullish. So, the stock will most likely resume the rally.
The chart hints at a potential appreciation to ₹1,600 in the short term. But there could be a price dip to ₹1,350 from here. Buy at ₹1,400 and accumulate if the price dips to ₹1,350. Place stop-loss at ₹1,280. When the stock jumps to ₹1,500, revise the stop-loss to ₹1,400. Tighten the stop-loss further to ₹1,480 when the price hits ₹1,550. Book profits at ₹1,600.