Movers and Shakers: Stocks that will see action this week

SBI Life Insurance (₹1,184)

Hits fresh all-time high

The stock of SBI Life Insurance company has been moving across a broad sideways trend until the end of April this year after rallying in the last two months of 2020. That is, it was oscillating between ₹850 and ₹960 during the first four months of 2021. But it broke out of the range in early May with considerable volume and since then it has been gaining gradually. However, it started to lose traction towards the end of July and for the past one month it was held within ₹1,100 and ₹1,170. But last week it rallied past the hurdle at ₹1,170 and hit a fresh all-time high of ₹1,192.6, opening the door for further rally. The price action too appears bullish. Thus, traders can consider going long in the stock with a stop-loss at ₹1,150 for a target of ₹1,250.

United Spirits (₹700.4)

Set to resume uptrend

The stock of United Spirits had a tough ride during the initial months of the current year as it began taking downward direction after hitting resistance at ₹660. Notably, it fell between mid-January and early April from about ₹660 to ₹510 levels, losing nearly 23 per cent. The price band of ₹500 and ₹510 acted as a demand zone from where the stock started to move upwards. While the scrip accelerated in May and June, it was blocked by ₹685. In the past couple of months, the stock was moving within ₹635 and ₹685. But before a couple of weeks, it broke out of ₹685 and rallied. Although the price moderated after reaching ₹730, it is only a corrective decline. The stock will most likely resume the uptrend, so, buy with stop-loss at ₹670; target at ₹750.

ACC (₹2,348.1)

Bulls in the driver’s seat

The stock of ACC, which has been consistently gaining since April 2020, continued its run in 2021 as well. The scrip has been moving upwards with intermittent healthy corrections, which had helped it establish a sustainable rally. It has been rebounding off the 50-day moving average whenever it drops to that level, hence proving to be a strong support. There was a slowdown in June, when the stock was moving in the tight price band of ₹2,000 and ₹2,065. Nevertheless, it invalidated this level in July and continued to move upwards. After reaching ₹2,450 levels in early August, it saw a price correction because of which it depreciated to ₹2,250. The stock bounced off this level last week, hinting at potential rally. So, buy with a stop-loss at ₹2,270; target can be at ₹2,490.

Motherson Sumi Systems (₹214.2)

Rally a mere pull-back

The stock of Motherson Sumi Systems, after declining in January, started recovering in February on the back of the support at ₹144. Even as there were corrections, the stock managed to scale new heights until the first week of June. After hitting a high of ₹272.8, the stock made a swift U-turn and fell quickly to ₹227. Until mid-August, the stock was facing consolidation as it was fluctuating within ₹227 and ₹246. Before a couple of weeks, it broke below the base of ₹227, turning the outlook bearish. While the stock rebounded from ₹200 last week, the rally does not appear to be a bullish reversal, rather only a pull-back before further decline. The stock has a resistance at ₹222. Hence, one can consider shorting with a stop-loss at ₹226. Target can be at ₹190.

HPCL (₹256.6)

Facing a resistance

The stock of Hindustan Petroleum Corporation Limited (HPCL), although doing well in 2021, was not able to establish considerable gains until April. But in May, the stock established a rally which lifted it from ₹225 to ₹310 by mid-June. However, after a brief period of sideways crawl, the bears cracked the support at ₹290 in the first week of August and since then the stock has been on a decline. The 21-day moving average crossed below the 50-day moving average, hinting that the medium term has turned downwards. While the stock appreciated last week from ₹245 to ₹256, the trend remains directionally downwards, and chances are more that decline will be extended. In view of these factors, traders can initiate fresh sell positions on the stock with stop-loss at ₹265. Potential target can be ₹240.