Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu | | Updated on: Nov 06, 2021

Shriram Transport Finance (₹1,617.2)

Confirms bull-flag pattern

The stock of Shriram Transport Finance began its rally after taking support at ₹560 in September 2020. However, since February this year, it has been oscillating between ₹1,250 and ₹1,500. Last week, the stock broke out of the range and confirmed a bull flag — a trend continuation pattern. So, the likelihood of further appreciation is high. But there are chances for a corrective decline to ₹1,500 before the rally. Hence, traders can buy the stock at current level and accumulate when price declines to ₹1,500. Stop-loss can be at ₹1,470. Going ahead, the stock will most probably gain towards ₹1,750, which can be the target for the longs. Once the scrip crosses ₹1,700, revise the stop-loss upwards to ₹1,620. Similarly, if it moves above ₹1,700 without correcting to ₹1,500, stop-loss can be maintained at ₹1,620.

Sobha (₹950.6)

Hits 52-week high

The stock of Sobha breached a multi-year resistance at ₹700 in September this year, affirming the bull trend. However, it witnessed a price drop last month, declining from about ₹900 to ₹700. Since ₹700 is now a support, where 50-day moving average and a rising trendline coincide, the scrip bounced off this level last week. Thus, the uptrend is intact, and it is likely to see another leg of up-move beyond the key level of ₹1,000 and touch ₹1,100 in next two to three months. Traders can go long at current price and buy again at ₹850. Place stop-loss at ₹800. When the scrip surpasses ₹1,000-mark, shift the stop-loss to ₹900. In case it rallies above ₹1,000 without testing ₹850, maintain stop-loss at ₹900. In both cases, the target price can be at ₹1,100.

Sun TV Network (₹607.6)

Breaches a key barrier

The stock of Sun TV network, which was on a downtrend since 2018, reversed direction in March 2020. Since then, it has been gaining gradually but faced a roadblock at ₹560. Last week, the scrip invalidated this resistance, thus creating more room for bulls on the upside. The weekly RSI and the MACD exhibit good upward momentum. In the forthcoming sessions, the stock can gain more traction and is likely to touch ₹680 in the near term. Above this, it can appreciate to ₹730. So, one can initiate fresh longs at current levels and accumulate at ₹560. Place stop-loss at ₹530. When the stock reaches ₹680, liquidate 50 per cent longs and revise the stop-loss for the rest up to ₹630. Exit the remaining at ₹730. If the stock rises past ₹680 without declining to ₹560, keep stop-loss at ₹630.

Published on November 06, 2021

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