Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu Bl Research Bureau | Updated on September 18, 2021

Dabur India (₹654)

Hits fresh lifetime high

The stock of Dabur India had a weak start to the year as it saw its price soften during the first couple of months. That is, in February, it made a low of ₹497. However, ₹500 being a psychological support, the stock quickly recovered above ₹500. Following this, it established an uptrend. The price continued to appreciate in the ensuing months, with minor intermittent corrections. Both the 21- and 50-day moving averages have been offering good support for the stock. The last leg of rally began a month ago from around ₹575. But since the beginning of this month, the stock has been stuck in the range of ₹630 and ₹645. Last week, it broke out of this range, opening the door for further gains. So, buy the stock with a stop-loss at ₹640; target at ₹680.

HCL Technologies (₹1,263.3)

Bulls running the show

Since the beginning of 2021, the stock of HCL Technologies has been charting a broad sideways trend i.e., fluctuating within ₹900 and ₹1,060. But in mid-August, it breached the upper limit of the range confirming a bullish flag pattern on the weekly chart. That is a bullish signal, and this pattern indicates a potential target of ₹1,750. Irrespective of this, the stock broke out of a range, and it has been rallying with good momentum, hinting at more upside, at least in the near term. Notably, it registered a fresh all-time high of ₹1,295.3 on Thursday before seeing a drop, which is likely to be nothing more than a corrective decline before the stock aligning with a major uptrend. Hence, traders can initiate fresh long trades with stop-loss at ₹1,220 for a target of ₹1,315.

SBI Life (₹1,198.8)

Looks set to rebound

The stock of SBI Life Insurance was flat until end of April this year. The scrip was trading flat in the price area of ₹845 and ₹960. It broke out of this range on the upside in early May but could not extend the rally sharply. Rather, the stock was gaining at a slow pace, and rising along the 21-day moving average (DMA). In mid-July, it gathered momentum and started to appreciate at better pace. Consequently, it marked a fresh high of ₹1,253.65 in early September. However, the price declined from there and is now hovering around ₹1,200 where 21-DMA lies. Importantly, the stock has bounced off from this moving average support several times and is more likely to repeat it. The overall trend is bullish. So, one can buy with stop-loss at ₹1,150. Target can be at ₹1,280.

Eicher Motors (₹2,898.5)

Sustaining above a support

The stock of Eicher Motors opened on the front foot this year and made a fresh 52-week high of ₹3,037 in January this year. But, thereafter the chart failed to keep up the traction. As a result, the stock started to head southwards and in the final week of April, it had fallen to mark a low of ₹2,303.7, losing about 24 per cent from the high of ₹3,037. But the price level of ₹2,300 being a good support bulls capitalised on it and pushed the price up. However, the stock was unable to crack the resistance band of ₹2,775 and ₹2,800 until recently. Since past three weeks, the stock is on a rise. It rallied past ₹2,800 and has been able to sustain above this level for over a week. Thus, there can be more upside and so buy with stop-loss at ₹2,830; target at ₹3,035.

UPL (₹742.3)

Rejected at a resistance

The stock of UPL has had a sharp rally in 2021 until early June. But the fortunes seem to have turned upside down for the stock as it reversed the trend and has been on a steady decline, making lower highs and lower lows. Post hitting the 52-week high of ₹864.7 in June, the stock made a U-turn. While it rebounded by taking support at ₹770 towards the end of June, it could not move past ₹850. Eventually it fell and a month ago, it slipped below ₹770 turning the near-term outlook bearish. Even last week, the stock made an unsuccessful attempt to go beyond ₹770 only to see fresh sell-off. The prevailing price action indicates the chances for further decline are high. Hence, initiate fresh shorts with stop-loss at ₹770. Target can be ₹680.

Published on September 18, 2021

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