Comments
Natco Pharma (₹1,426.9)
Rebounds from a support
Natco Pharma’s stock, after hitting a record high of ₹1,638.35 in early September, has been witnessing a downtrend. But this drop in price is largely a corrective decline within the broader uptrend. Last week, the stock bounced off the support at ₹1,290. A trendline also coincides at this level, making it an important base.
We anticipate a resumption in the uptrend from here. The stock can touch ₹1,700 over the next few months. So, participants can buy at ₹1,425 and accumulate at ₹1,320. Keep initial stop-loss at ₹1,200. When the stock surpasses ₹1,500, revise the stop-loss to ₹1,400. Tighten the stop-loss to ₹1,580 when the price hits ₹1,630. Exit at ₹1,700.
The Ramco Cements (₹891.45)
Set to break out
The stock of The Ramco Cements has been appreciating gradually since July after it found support at ₹775. But the bulls are now facing a barrier between ₹885 and ₹900. Nevertheless, the price action indicates a clear bullish bias, and we expect the stock to breach ₹900 soon. But before that, there might be some moderation in price, probably to ₹850.
The outlook will turn negative only if the scrip falls below ₹800. Traders can buy at the current level and accumulate on a dip to ₹850. Place initial stop-loss at ₹780. When the price rises to ₹950, tighten the stop-loss to ₹900. On a rally to ₹1,000, trail the stop-loss to ₹975. Book profits at ₹1,030.
Tata Power (₹445.2)
Buying interest seen
The stock of Tata Power broke out of the range of ₹400-465 towards the end of September. However, through October, the price was on a decline. But the support at ₹400 stays valid and the broader trend is bullish. The monthly chart also indicates considerable buying interest between ₹400 and ₹430. Therefore, the probability of the stock appreciating is high.
Traders can go long now at ₹445 and buy more shares in case the price dips to ₹400. Place initial stop-loss at ₹360. When the stock moves above ₹500, trail the stop-loss to ₹460. Revise the stop-loss further up to ₹510 when the price touches ₹550. Liquidate the longs at ₹600.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.