Chalet Hotels (₹406.4)

At a demand zone

Chalet Hotels has been in an uptrend since early 2021. In early May this year, the stock penetrated through a resistance band ₹390-400, opening the door for further appreciation. However, after reaching ₹450 a month ago, the stock faced downward pressure because of which its price has now softened to ₹406.4. But note that the price band of ₹390-400 will be a support.

We expect Chalet Hotels’ share price to start moving up on the back of this. So, one can buy the stock now at around ₹406 and add more longs in case the price dips to ₹390. Place stop-loss at ₹370; shift this up to ₹410 when the price rises above ₹430. Further tighten the stop-loss to ₹440 when the stock hits ₹460. Exit at ₹480.

Exide Industries (₹232.4)

Breaks out afresh

Exide Industries’ stock has been on a rise ever since it took support at ₹130 in June last year. Notably, it broke out of a key resistance at ₹220, which also happens to be the neckline of a double-bottom chart pattern. Thus, the probability of the stock going up further is high and according to the pattern, the potential is up to ₹300. But there could be a minor corrective decline, possibly to ₹220.

Therefore, traders can go long on the stock of Exide Industries at the current level of ₹232 and add more longs in case the price softens to ₹220. Keep an initial stop-loss at ₹208; move it up to ₹240 when the stock rallies past ₹250. Similarly, when the price goes above ₹260, modify the stop-loss to ₹250. Book profits at ₹270.

The Ramco Cements (₹930.1)

Corrective decline likely

The stock of The Ramco Cements, after breaking out of a hurdle at ₹815 last month, rose sharply. After rallying in the recent weeks, the stock has now reached a supply zone between ₹930 and ₹950. Also, the daily RSI is now at the overbought levels. So, although the trend is bullish, there is a good chance for the stock to see a corrective decline to ₹860 in the near term. Hence, fresh short positions can be taken.

However, note that this is a high-risk trade as it is a counter trend one. So, traders with high risk appetite can short The Ramco Cements at the current level of ₹930. Place stop-loss at ₹965. When the price slips below ₹890, alter the stop-loss to ₹915. Bring the stop-loss further down to ₹890 when the stock declines below ₹875. Liquidate the shorts at ₹860.

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