Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on October 16, 2021

ICICI Securities (₹878.5)

Rallies past a strong hurdle

The stock of ICICI Securities, which had been appreciating steadily from ₹380 since April, lost traction when the price reached ₹800 in July. However, the stock rallied past this level last week with substantial volume, turning the outlook bullish. Supporting the positive outlook, the RSI and the MACD are in the bullish zone. Nevertheless, there can be a minor price correction, but will be short-lived. Given the prevailing price action, traders can consider initiating longs at current levels and accumulate if the price drops to ₹810. Place initial stop-loss at ₹780. The stock is expected to appreciate to ₹1,000 in about a couple of months but there can be a pause at ₹940. Once the stock goes past ₹940, revise the stop-loss upwards to ₹900 and wait for the potential target at ₹1,000.

Indian Bank (₹164.5)

Confirms ascending triangle

Since the beginning of this year, the stock of Indian bank made two attempts to breach the resistance at ₹155 but failed to get past it. Nevertheless, the price action since February shows that the scrip has been forming higher lows. Last week, the stock successfully broke out of the barrier at ₹155 with significant volume and has confirmed an ascending triangle pattern, hinting at continuation of the rally. But the stock could retest the resistance-turned-support level of ₹155 before heading towards ₹180. A breakout of this level can lift it up towards the ₹200-mark. Hence, one can buy the stock at around ₹164 and then again at ₹155. Stop-loss can be at ₹147; exit at ₹185. In case the stock rallies above ₹172 without retesting ₹155, shift the stop-loss to ₹165.

National Aluminium Co (₹107.6)

Registers multi-year high

The stock of National Aluminium Company has been on a rise since November last year. Although there were significant corrections, the overall trend has continued to remain up. On the back of this, the stock crossed a milestone as it appreciated above ₹100 and marked a multi-year high of ₹108.75 last week. The bull trend remains intact, and the stock is set to continue its run upwards. Corroborating the positive outlook, the RSI and the MACD on the daily chart are showing fresh uptick and there is a good build-up in volume along the price rise. Also, until the stock remains above ₹100, bulls will have an advantage. So, traders can initiate fresh long positions at ₹105 and maintain stop-loss at ₹98. Target can be at ₹120 which can be attained within a month.

Adani Ports and SEZ (₹812.8)

Sees a fresh breakout

The stock of Adani Ports and Special Economic Zone has been in a strong uptrend ever since November last year. However, after reaching ₹885 in April this year, the stock lost momentum and turned more volatile. For the past four months, it has been trading below ₹780. But last week, the stock closed above this level, giving it a bullish outlook. So, going ahead, the stock can see a minor pull-back, possibly towards ₹780-800 band, and then appreciate to ₹850 and ₹885. One can buy the stock at current levels and accumulate on dips at ₹780. Initially stop-loss can be placed at ₹758. Once the stock rallies to ₹850, consider booking partial profits and revise the stop-loss for the rest of the position upwards to ₹815. Exit the pending positions at at ₹885.

Suprajit Engineering (₹380.2)

Breaks a key resistance

The stock of Suprajit Engineering, which launched its upward trajectory in June last year from about ₹110, faced its first roadblock at ₹300 in March this year. Apparently, this was breached, and subsequently the stock faced hurdle in the ₹335-338 area in the past two months. But the scrip breached ₹335 last week, making the case stronger for the bulls to dominate. Nevertheless, a price correction cannot be ruled out, which can drag the stock to ₹360. On the upside, it has the potential to rise past ₹400 and touch ₹425 in the near term. So, traders can initiate fresh longs at current levels and accumulate at ₹360. Place stop-loss at ₹340. Book profits at ₹425. Ifthe stock rallies above ₹400 without a correction , move the stop-loss up at ₹380.

Published on October 16, 2021

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