Godrej Consumer Products (₹833.4)
Short-term fall expected
The stock of Godrej Consumer Products seems to have completed the corrective upmove by falling off the resistance at ₹940. It slipped below the 20- and 50-week moving averages a couple of weeks ago and is sustaining below these levels. The broader trend too is negative. Therefore, one can expect the stock to fall from the current level.
The price action hints at a sharp fall in the coming week, making it an ideal candidate for near-term short positions. Our forecast is that the stock will depreciate to ₹750 within a month. Hence, one can short the stock at the current level of ₹833 with stop-loss at ₹865. Modify the stop-loss to ₹805 when the price slips below ₹790. Exit the shorts at ₹750 since this is a good support against which there could be a bounce.
Grindwell Norton (₹2,049)
Retesting a support
The stock of Grindwell Norton has been on a decline over the past month. However, it has now declined to levels that can act as support. The price band of ₹1,920-2,000 is a strong base against which the scrip can rebound. Considering this along with the latest candlestick on the weekly chart, which is a bullish pin bar, the chances for a rally from here looks good. But there is a chance for a dip to ₹1,920.
So, traders can buy three-fourth of the intended quantity at the current level of ₹2,049 and add more longs when price dips to ₹2,000. Place initial stop-loss at ₹1,900. When the stock moves above ₹2,125, revise the stop-loss up to ₹2,050. On a rally above ₹2,175 tighten it to ₹2,100. Exit all the longs when the stock touches ₹2,300.
Sun Pharmaceutical Industries (₹976.3)
Confirms ascending triangle
In April and July, the attempts to break out of the resistance at ₹950 did not bear fruit for the stock of Sun Pharmaceutical Industries. But in early October, this resistance was breached, and the stock is able to sustain above the same. The breakout of ₹950 has confirmed an ascending triangle pattern and this indicates at the continuation of the uptrend from here.
The pattern hints at a rally to ₹1,100 in the near term. But there is also a chance for a price dip to ₹925 before the stock sees off the ₹1,000-mark. Therefore, participants can buy now and accumulate on a corrective decline to ₹925. Place stop-loss at ₹880 at first and then modify it to ₹960 on a move above ₹1,000. Tighten it further to ₹1,000 on a rally above ₹1,050. Book profits at ₹1,100.