Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on October 10, 2021

Tata Motors (₹383)

Breaks out of a range

The stock of Tata Motors saw its price rally marginally initially this year. But, thereafter, it entered a sideways trend and was largely oscillating within a broad range of ₹284 and ₹358. Last week, the stock gathered enough momentum and breached the upper limit of this range of ₹358, reigniting the bullish spirits. Going forward, the stock is likely to embark on a fresh leg of uptrend. Nevertheless, a minor correction cannot be ruled out, which is affirmed by a bearish pin bar formed on Friday. So, the stock can retest the resistance-turned-support of ₹358 before going up. Hence, traders can go long at current levels and accumulate at ₹360. Place the stop-loss at ₹335. On the upside, the stock is likely to hit ₹430, which can be the primary target. A breach of this level can take it to ₹465.

Bosch (₹17,696.9)

Marks fresh 52-week high

There has been no clear trend in the stock of Bosch Limited since the beginning of this year. The scrip was stuck between ₹13,420 and ₹16,260. Notably, the price band of ₹16,260 and ₹17,300 has been acting as a strong resistance and has been preventing the rally since November 2019. But last week, it decisively breached this band, opening the door for further rally. The breakout occurred with significant volume, strengthening the bullish case. The stock is likely to rise to ₹20,000 — a psychological level. A breach of this level can lift the stock to ₹21,000. So, traders can consider buying the stock at current levels and accumulate if price moderates to ₹16,700. Place initial stop-loss at ₹15,900 and shift it to ₹19,000 if the stock rallies past ₹20,000 and look for a target of ₹21,000.

Bata India (₹1963.9)

Breaches a key resistance

The stock of Bata India had a weak opening to the year 2021 and saw considerable depreciation during the initial months. But on the back of the support at ₹1,270, the bulls turned the tide in their favour and started to push the price upwards since April. Consequently, the stock broke out of the key resistance at ₹1,900. The rally is set to continue as the upward momentum looks good. But there could be post breakout price correction from current levels,which can drag the scrip towards ₹1,900 before resuming the upward journey. So, traders can buy the stock at current levels i.e., around ₹1,960 and can average if price drops to ₹1,900. Stop-loss can be maintained at ₹1,820, look for primary target at ₹2,140, where there can be a pause. Next target can be the subsequent resistance at ₹2,200.

L&T Infotech (₹5,983.6)

Bulls regaining traction

The stock of L&T Infotech, after breaking out of the resistance at ₹4,500 in July, established a steady uptrend. It continued to make consistent gains until it marked a fresh all-time high of ₹6,498.5 in the last week of September. But then, the price dropped to ₹5,660. Nevertheless, the stock attracted buyers last week and is now showing signs of fresh bullish momentum being built up, especially on the back of the 21-day moving average (DMA) support. Since the scrip has bounced off from the 21-DMA earlier as well, it can be expected to repeat the same. Additionally, the major trend is still bullish. So, going forward, the stock will most probably gain from here. One can go long with initial stop-loss at ₹5,620 for a target of ₹6,500. Revise stop-loss to ₹6,000 when stock surpasses ₹6,300.

Emami (₹551.8)

Trend turning southwards

The stock of Emami Limited, which saw its price decline in the first three months of this year, reversed the trend upwards after taking support at ₹132. Thereafter, the stock continued to move up and made a high of ₹621.8 towards the end of August. But then, it lost momentum and started to depreciate. The scrip slipped below a rising trend line and 21- and 50-day moving averages. The RSI and the MACD have entered bearish territory and invalidated the support at ₹570. Given this, the stock is likely to extend the down-move towards the supports at ₹508 — the 23.6 per cent Fibonacci retracement level — and ₹483. So, traders can consider shorting at current level. Accumulate shorts again if price rallies to ₹570. Place the stop-loss at ₹595. Potential targets can be at ₹508 and ₹483.

Published on October 09, 2021

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