Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on June 26, 2021

Axis Bank (₹761.3)

Breaks out of a range

The stock of Axis Bank, which has been in a strong uptrend in the last year, witnessed its first challenge in February this year when it hit the resistance at ₹800. There was a considerable fall from that level and consequently, the scrip fell until it found support at ₹630 levels in April. Essentially, the stock depreciated by about 21 per cent in a couple of months. Nevertheless, it regained upward momentum and began moving up off the support at ₹630. While it rallied in the subsequent month, the stock entered a sideways trend in June wherein it started to oscillate in the band between ₹725 and ₹750. But last week, the stock broke out of the range, opening the door for further upside. So, one can buy the stock with a stop-loss at ₹735 for a target of ₹800.

Britannia Industries (₹3,670)

In good upward momentum

Since the beginning of 2021, the stock of Britannia Industries has largely been trading in a broad range of ₹3,400 and ₹3,800. The last decline in price was in April and May whenthe stock fell from the range top to the range bottom. The support at ₹3,400 stayed valid and thus the stock started its journey upward in the final week of May. The rally continued and last week, it moved past an important level of ₹3,650 and thus, the stock looks set to retest the resistance band of ₹3,800 and ₹3,820. Supporting the bullish view, indicators like the RSI and MACD are positive and hint at more on the upside. Hence, traders can consider initiating fresh longs at current levels with a stop-loss at ₹3,590. The stock is most likely to touch ₹3,820.

SBI Cards (₹972.3)

At a crucial support

The stock of SBI Cards and Payment Services has been appreciating at a quick pace since May 2020. Although the rally slowed down in the last few months of last year, it picked up traction as the calendar turned. But after hitting a high of ₹1,139 in early March, the stock overturned the trend and fell towards ₹885 in April. Nevertheless, the bulls started to push the price higher as ₹885 acted as a good support and as a result, the stock gained and retested ₹1,139 again during the second week of June. But, similar to what happened in March, the stock began moving downhill and reached ₹970 levels. This level is a strong support and bulls are expected to make a comeback. Hence, traders can buy the stock with a stop-loss at ₹930 for a target of ₹1,050.

InterGlobe Aviation (₹1,728.2)

Faces considerable resistance

The stock of InterGlobe Aviation appreciated between August and November last year wherein the price rose from about ₹950 to reach ₹1,770 levels. However, since reaching these levels in November, the stock is struggling to establish a trend and till now it has not been able to breach ₹1,800 on the downside and on the other hand, the support at ₹1,500 looks to provide good cushion to the scrip. Along these lines, the stock, which went above ₹1,800 before a couple of weeks briefly, fell back below these levels and slipped below 21-day moving average and an important support at ₹1,750 as well. Also, the RSI and the MACD on the daily chart are showing a negative inclination. Therefore, one can consider selling the stock for the short term with stop-loss at ₹1,800. Potential target can be ₹1,600.

Hindalco Industries (₹375.9)

Slips below key support

The stock of Hindalco Industries, which dropped below ₹100-mark in March 2020, went on to mark a low of ₹85. However, the stock swiftly reversed the trend and established a robust uptrend. The trend was so strong that the stock price had multiplied by about five times when it marked a fresh lifetime high of ₹427.5 in May this year. But since then, the stock has been depreciating slowly. While ₹380 provided considerable support arresting the fall, this level was invalidated recently and last week the stock stayed below this level. This is an indication that the bulls are struggling to gain ground and, going ahead, the price can drop since ₹380 now acts as a hindrance. Thus, traders can risk shorting the stock with stop-loss at ₹387 and look for a possible target of ₹352.

Published on June 26, 2021

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