Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on July 24, 2021

Colgate-Palmolive (India) (₹1,795)

Bulls firm up their hold

The stock of Colgate-Palmolive (India) has been moving in a sideways trend in 2021, largely between ₹1,520 and ₹1,660. In April, it slipped below the lower boundary of ₹1,520 and made a low of ₹1,468. However, buyers soon overpowered sellers and pushed the price upwards of ₹1,520. The rally continued and it eventually lifted the stock above the resistance of ₹1,660. Post the breakout, the stock showed sluggish behaviour but was hovering above ₹1,660. It then gained fresh momentum and, last week, it closed above ₹1,760, which has been blocking the bulls for the past one month. Thus, the outlook for the scrip is bullish and supporting the same, RSI and MACD are showing fresh uptick. Hence, one can consider going long in the stock with stop-loss at ₹1,745; potential near-term target can be ₹1,890.

ICICI Bank (₹676.6)

Closes above a key level

The stock of ICICI Bank, which has been recovering since mid-April after witnessing a considerable depreciation, made a move last week that hints that it will establish a fresh leg of uptrend. That is, bouncing off the support at ₹535 three months ago, the stock made good progress. However, since June, the stock has been facing a barrier at ₹665 and was in a consolidation mode. But last week, it gained enough traction to crack the resistance at ₹665 wherein it closed at ₹676.6, opening the door for further strengthening. Hence, the stock could rise above the prior high of ₹679.4 and register fresh lifetime high during the forthcoming sessions. Considering the above factors, traders can initiate fresh long positions in the stock with a stop-loss at ₹650. One can look for a primary target of ₹720.

Tech Mahindra (₹1,131)

Marks fresh all-time high

The stock of Tech Mahindra was charting a sideways trend since the beginning of 2021. It was largely oscillating between ₹940 and ₹1,080. Notably, the stock started testing the resistance of ₹1,080 in mid-June and the price action on the daily chart shows that the stock was attempting to break out of the resistance. Although it briefly traded above this level, it was unable to breach it decisively. But last week, bouncing off the 21-day moving average at ₹1,080 levels, the stock rallied and closed above the key resistance. The breakout saw substantial volume and indicators like the RSI and the MACD are in their positive zones. Even though the stock closed with a minor loss on Friday, the outlook is positive. So, one can buy the stock with stop-loss at ₹1,080 for a target of ₹1,200.

GIC Re (₹173.7)

In a steady downtrend

The stock of General Insurance Corp of India (GIC Re), after declining in January this year, saw a sudden surge in price in February. From about ₹130, the stock rallied sharply and marked a fresh 52-week high of ₹244.2 in mid-March, appreciating by nearly 88 per cent within a couple of months. However, it could not sustain at those levels and dropped at equally quick pace. But the decline was arrested at ₹183 and until mid-July, the stock was mostly oscillating between ₹190 and ₹210. A couple of weeks back, the stock slipped below ₹190 and has been steadily declining. Last week, it broke below the support at ₹183 and the price action now suggests further decline. Hence, one can short the stock with stop-loss placed at ₹183 and where the short-term target can be ₹158.

Indus Towers (₹220.5)

Breaks down from a range

The stock of Indus Towers, though moving in a sideways trend, witnessed considerable volatility. That is, the scrip saw too many price swings within the price band of ₹230 and ₹270 for most part of 2021. Despite rising to hit a fresh 52-week high of ₹282.6 in the final week of February, the stock was unable to establish an uptrend and depreciated. In early June, the stock price began to moderate which led to the breach of the base of ₹230 during last week. The stock made a weekly close below that support, indicating a bearish outlook. Notably, the price has fallen below 50- and 200-day moving averages, hinting that the scrip can be under pressure for quite some time. So, traders can sell the stock with stop-loss at ₹234 and the target can be ₹190.

Published on July 24, 2021

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