Movers and Shakers: Stocks that will see action this week

Marks fresh all-time high

The stock of Godrej Consumer Products began 2021 on a weaker note and witnessed a decline till mid-March. Although it rallied in the first week of January, it gave away the gains after reaching ₹808 and fell to mark a low of ₹646 in March. But since ₹650 is a support, the stock soon recovered from the lows and started to appreciate. While the recovery initially appeared sluggish, the stock gained strong traction and broke out of ₹808 and continued to rally in the following months. But since the last week of July, the contract has been in a sideways trend as it lost momentum, largely oscillating between ₹970 and ₹1,020. But last week it rallied past ₹1,020, turning the outlook bullish. Hence, traders can buy with a stop-loss at ₹995 for a target of ₹1,095.

Above a key support

The stock of Bharti Airtel, which opened the year at ₹512, appreciated and touched ₹623 in early February. But it could not rally beyond that price point and started to moderate. By early March, the scrip had dropped to ₹520. Since this is a good base, the decline was stopped, and it started to move along a horizontal trend. Even though there was an attempt to recover in May, the stock could not go beyond ₹577 and fell back to ₹520 levels soon. However, in early August, the stock gained and managed to breach ₹577 and went above the previous high of ₹613 and touched ₹644 last Monday before losing some gains. Yet, the breakout looks strong, and the price moderation is likely to be a corrective decline. So, buy with stop-loss at ₹590; target at ₹655.

At range bottom

The stock of IndusInd Bank witnessed higher volatility until May this year — it saw a sharp fall in price to reach the support band of ₹800 and ₹820 from where it recovered towards ₹1,120 by the end of February. However, it again fell to ₹800 levels in April. But then, the volatility started to decline, and the stock gradually moved above ₹950. The price action since mid-May shows that the scrip has been in a sideways crawl i.e., it has been oscillating within ₹965 and ₹1,060. Last week, the stock fell and closed near ₹980, thus reaching the lower boundary of the range. The stock is likely to bounce from the current levels and could rise to ₹1,060 in the near term. Thus, traders can risk going long in the stock with a stop-loss at ₹945 for a target of ₹1,060.

Breaks down from a range

The stock of Bank of Baroda, after hitting a 52-week high of ₹99.85 in February, made a U-turn and fell with a quick pace. That is, it declined to ₹61.75 in April, losing about a significant 38 per cent in a couple of months. What followed was a recovery and when the calendar turned June, the stock lost momentum and entered consolidation phase. Until last week, it was fluctuating within ₹77 and ₹87. But on Friday, it decisively broke down from the range and closed at ₹74.15, turning bearish. Indicators like the relative strength index (RSI) and the moving average convergence divergence (MACD) too are in the negative zone. Also, the volume has been increasing along with price drop. Thus, traders can sell the stock with a stop-loss at ₹77. Target can be at ₹68.

Breaches a support

The stock of UPL began 2021 strongly and had been rallying steadily during the first half of the year. It also marked a fresh 52-week high of ₹864.7 in June. But the price started to drop after reaching this level wherein it softened to ₹770 by the end of June. While the scrip attempted to re-establish the uptrend, it faced a barrier at ₹850 from where it slipped to ₹765. After a brief consolidation period, it invalidated the support at ₹765 and closed at ₹738.3 last week, opening the door for further drop in price. Affirming the bearish inclination, the 21-day moving average (DMA) is now below 50-DMA; the RSI and the MACD are showing bearish signs. Thus, the stock is likely to depreciate and so, one can short it with a stop-loss at ₹770. Target can be at ₹665.