Shall I buy Dalmia Bharat May futures at the current price? What can be the stop-loss and target for this trade? – Palani Shanmugam

Dalmia Bharat (₹1,825): This stock has been in a downtrend since the beginning of 2024. It started to fall after facing a barrier at ₹2,400. Notably, on Thursday, Dalmia Bharat’s stock lost 7.5 per cent.

However, the weekly chart shows that the price band of ₹1,760-1,850 is a good support band. So, there is a chance for the stock to witness a corrective rally, if not a bullish trend reversal.

But there is also a chance for the price to dip to ₹1,760 before seeing a recovery. Moreover, at the moment, there are no signs of a rally, particularly after the stock saw considerable sell-off on Thursday.

Our recommendation would be to stay out for now and wait for clear bullish signs like a morning start  or a bullish pin bar candlestick patterns. Or if the stock rallies past ₹1,980, it can be taken as a signal that the short-term outlook has chanced positive. Because, at ₹1,980, the 20- and 50-day moving average and a falling trendline resistance coincides. So, a breakout of this level can attract more bulls.

Buy on the breach of ₹1,980. Target and stop-loss can be ₹2,100 and ₹1,920 respectively.

Send your queries to derivatives@thehindu.co.in

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