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.