Engineers India (₹98.2)
Hits three-year high
Engineers India’s share price was oscillating in the range of ₹55-90 since February 2020. A fortnight ago, the stock broke out of ₹90, indicating a bullish trend reversal. It is now struggling to surpass the key ₹100-level. However, we expect the stock to see a minor decline because of this hurdle but eventually recover and breach ₹100 soon. Therefore, traders can deploy one-third of the total intended amount for this stock at the current level to go long.
When the price dips to ₹90, buy for the remaining two-third of the capital. Thus, the average buy price would be ₹92. Place stop-loss at ₹78 initially and move it up to ₹98 when the price moves above ₹110. On a rally to ₹125, exit 50 per cent of the total longs and tighten the stop-loss to ₹115. Liquidate the remaining longs at ₹140.
JBM Auto (₹772.7)
Set to resume uptrend
JBM Auto’s share price has been on a rise since the beginning of this year. But after reaching ₹850 a couple of weeks ago, it seems to have lost the momentum. The price, in fact, fell and the stock closed at ₹772.7 last week. That said, there is a strong support at ₹735, where a trendline support is likely to coincide and the broader trend is still bullish.
So, the recent fall appears to be a corrective one and we anticipate a resumption in the uptrend this week. Hence, one can buy JBM Auto’s shares now at around ₹773 and buy more in case the price softens to ₹745. Keep stop-loss at ₹710. When the stock crosses over ₹800, modify the stop-loss to ₹760. Further, tighten the stop-loss to ₹810 when the price gets past ₹850. Liquidate the longs at ₹880.
Jubilant Foodworks (₹467.4)
Expected to breakout
Jubilant Foodworks’ stock, which was in a downtrend, seems to have hit the bottom. The stock has found support at ₹420 and rebounded off this level. It is currently testing the resistance at ₹470 and the prevailing price action hints at an imminent breakout. Such a move will confirm bullish trend reversal and will significantly increase the odds for Jubilant Foodworks to appreciate towards ₹540 in two-three months.
Hence, we suggest traders buy the stock now at around ₹467 and add more shares if the price dips to ₹452. Keep initial stop-loss at ₹430; lift it to ₹485 when the price goes above ₹510. Tighten the stop-loss further to ₹510 when the stock touches ₹525. Book profits at ₹540 since it is a resistance level.