Technical Analysis

Movers and Shakers: Stocks that will see action this week

Yoganand D BL Research Bureau | Updated on September 11, 2021

Abbott India (20,698.9)

Records new high

The stock of Abbott India climbed 3.5 per cent with above-average volume, breaking above a key short-term resistance at ₹20,000 on Thursday. With this rally, the stock has resumed the primary trend which is up. Across all time frames, the stock is on an uptrend. After a corrective decline, the stock found support at ₹14,000 in February this year and has been in an intermediate-term uptrend. In early August, it broke through a long-term hurdle at ₹18,000 and continued to trend upwards. But the recent up-move faces a key barrier ahead at ₹21,000. Next resistance are at ₹21,500 and ₹22,000. Both the daily and the weekly relative strength index are featuring in the overbought territory, indicating a near-term correction is likely. Investors can consider booking partial profit at this juncture and stay invested with a stop-loss at ₹19,800. Supports are at ₹20,000 and ₹19,000.

Ashok Leyland (₹125.3)

Gains bullish momentum

The stock of Ashok Leyland found support at around ₹116 in late August, arresting the downtrend that began from the early August high of ₹143.3. Triggered by positive divergence in daily relative strength index, the stock changed direction andtrended upwards. After a pause at around ₹123, it surpassed resistance at ₹124, by gaining almost 3 per cent with above-average volume on Thursday. It also closed above 21-day moving average. Both daily and weekly RSI are progressing towards the bullish zone. Immediate resistance is at ₹128. A further rally can take the stock to ₹132 and ₹137.5. Resistances are at ₹140 and ₹143. But if the stock falls below ₹120, it can re-test support at ₹116. A plunge below this can drag it to ₹112.5 or ₹110 over the short term.

Indus Towers (₹242.3)

Strengthens bullish momentum

The stock of Indus Towers surged 7.4 per cent, accompanied by above-average volume, in the past week. This rally has strengthened the bullish momentum. In early August, the stock reversed from around ₹194 an it has been in a near-term uptrend. While trending up, the stock had conclusively breached a key hurdle at ₹230 last week . The stock now tests resistance at ₹244. A break above this level will reinforce the up-move and take the stock up to ₹260 over the coming weeks. A decisive breakthrough of the medium-term hurdle at ₹260 will underpin the uptrend and take the stock higher to ₹270 and then to ₹280. But a slump below the immediate base level of ₹220 can pull the stock down to ₹210 and then to ₹200 levels. Traders can buy the stock at current levels with a stop-loss at ₹235 for a target of ₹260 levels.

Nestle India (20,439)

Scales new heights

Last week, the stock of Nestle India was volatile. After a 2.6 per cent fall on Wednesday, it bounced back, gaining 3 per cent on Thursday. However, the stock’s short-term uptrend shows sign of weakness as the daily relative strength index is displaying negative divergence. The stock now tests resistance at ₹20,500. A rally above this level could be short-lived and the stock can test next resistance at ₹21,000. On the downside, a fall below the immediate support at ₹20,000 can bring back selling pressure and pull the stock down to ₹19,470 and then to ₹19,000 over the short term. A conclusive plunge below the vital base level of ₹19,000 will alter the short-term uptrend and drag the stock lower to ₹18,300 and then to ₹18,000. Investors can consider booking partial profit at this juncture.

Zee Entertainment Enterprises (₹183)

Reverses higher from a key base

The stock of Zee Entertainment Enterprises (ZEEL) recoded a 52-week low at ₹166.8 in late August and found support in the band between ₹166 and ₹170. The downtrend that began from the June high at ₹218 halted in late August. Subsequently, the stock reversed direction triggered by positive divergence in the daily relative strength index and has been in a near-term up-move over the past two weeks. On Thursday, the stock advanced 3 per cent surpassing the immediate resistance at ₹180 as well as the 21-day moving average. Further, the daily RSI is charting higher in the neutral region and the weekly RSI has entered the neutral region from the bearish zone. The stock can trend upwards to ₹190 and then to ₹200 over the short term. Traders can buy with a stop-loss at ₹174.

Published on September 11, 2021

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