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BHEL (₹269.8)
Trading near a base
The stock of Bharat Heavy Electricals Ltd (BHEL) has been on a decline since early August. It fell off the barrier between ₹325 and ₹335. But it found support at ₹255 by mid-September. This level has been holding well since then. The chart shows that the downtrend has potentially come to an end and the stock is set to rise from here.
In the near term, the stock will most probably touch ₹325. So, go long now at ₹270. Accumulate if the price declines to ₹255. Place the stop-loss at ₹230. When the price rises to ₹290, trail the stop-loss to ₹270. Tighten the stop-loss further to ₹290 when the stock touches ₹310. Book profits at ₹325.
Olectra Greentech (₹1,751)
Shows signs of recovery
The stock of Olectra Greentech, since February, has largely been moving in a broad sideways trend. Nevertheless, the chart shows a bearish bias. That said, since early August, the scrip has been trading above ₹1,520. Although the stock is now hovering around the resistance at ₹1,750, the price action has started showing bullish bias, which can potentially lift the stock above it.
We expect the price to go up to ₹2,150 in the short term. So, initiate fresh buys at about ₹1,750 and add more longs if the price drops to ₹1,620. Place stop-loss at ₹1,470. When the stock surpasses ₹1,850, revise the stop-loss to ₹1,675. When the price hits ₹2,000, tighten the stop-loss to ₹1,920. Exit at ₹2,150.
Whirlpool of India (₹2,357.4)
Breaks out of a range
The stock of Whirlpool of India was charting a sideways trend between ₹2,000 and ₹2,220 since July and until a couple of weeks ago. But two weeks back, the scrip broke out of the resistance at ₹2,220, opening the door for further appreciation. That said, before the next leg of rally, the stock could soften to ₹2,220. Therefore, participants can buy shares of Whirlpool of India at the current level of ₹2,357.
Add longs if the price moderates to ₹2,220. Keep a stop-loss at ₹2,120. When the price moves up to ₹2,530, modify the stop-loss to ₹2,380. Move the stop-loss further up to ₹2,500 when the stock touches ₹2,650. Liquidate the longs at ₹2,740.
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