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Granules India (₹598.7)
Signs of recovery
The share price of Granules India tumbled in the first half of September. It was stopped by the support at ₹540. After testing this support thrice, the scrip started to recover. The weekly chart shows that the recent recovery can sustain, potentially leading to a rally to ₹720 over the medium term. That said, there is a chance for the stock to moderate to ₹570 before the next leg of uptrend.
So, based on this expectation, we suggest participants to buy shares of Granules India at the current market price. Buy more if the price softens to ₹570. Keep stop-loss at ₹520. When the stock appreciates to ₹670, revise the stop-loss up to ₹640. Liquidate the longs at ₹720.
Zensar Technologies (₹691.6)
Finds a support
The stock of Zensar Technologies, over the last month, saw a decline in price. But in early October, it found support at ₹660, which arrested the decline. On the back of this base, the stock has recovered to the current level. At ₹660, a rising trendline support and the 200-day moving average coincide. Also, the broader trend is bullish.
Therefore, the probability of a rally from the current level is high. So, traders can buy Zensar Technologies now at ₹692. Accumulate in case the price dips to ₹660. Place stop-loss at ₹620. When the price rises above ₹740, revise the stop-loss to ₹700. Tighten the stop-loss further to ₹750 when the stock touches ₹785. Exit at ₹815.
Karur Vysya Bank (₹222)
Set to rally
The stock of Karur Vysya Bank has been in a long-term uptrend. Nevertheless, in the recent weeks, the price saw a decline. However, the bears could not drag the price below the support at ₹200. The price surged last week on the back of this base. Thus, the bulls appear to be taking charge thereby increasing the probability of a rally.
While there is a chance for the price to soften to ₹210, we expect the stock to eventually rise to ₹280 over the medium term. Hence, we recommend buying the stock now at ₹222 and accumulate at ₹210. Place the stop-loss at ₹185. When the price goes above ₹240, revise the stop-loss to ₹215. Tighten the stop-loss further to ₹240 when the stock touches ₹260. Exit at ₹280.
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