Technical Analysis

Movers and Shakers: Stocks that will see action this week

Gurumurthy K | | Updated on: Nov 13, 2021

Stock Market Chart. 2d illustration | Photo Credit: bluebay2014

Tube Investments of India (₹1751.45)

The short-term outlook for the stock of Tube Investments of India is bullish. The stock has been in a strong uptrend since March last year. The prices have skyrocketed over 25 per cent in the last two weeks, breaking above the psychological level of ₹1,700 that was capping the upside for some time. This has strengthened the overall uptrend. The bullish momentum is likely to continue in the coming weeks as the indicators on the charts are favouring a further rise from here. Intermediate support is at ₹1,680 and then strong support is in the ₹1,620-₹1,600 regions. Dips to these supports are likely to get fresh buying interest in the market.

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The stock has potential to move up towards ₹1,980-₹2,000 in the coming weeks. Traders with a short-term perspective can go long at current levels and accumulate on dips at ₹1,700. Stop-loss can be placed at ₹1,595. Trail the stop-loss up to ₹1,785 as soon as the stock moves up to ₹1,830. Move the stop-loss further up to ₹1,885 as soon as the stock price touches ₹1,940. Book profits at ₹1,980. The bullish outlook will get negated if the stock breaks below ₹1,600 decisively. Such a break will drag the stock down to ₹1,450 initially and then to ₹1,380-₹1,350 eventually.

Indoco Remedies (₹420.2)

Strong signals of a corrective fall have emerged on the charts of Indoco Remedies. The stock was in a strong uptrend since March. This uptrend paused in July this year and the stock has been consolidating in a broad sideways range since then. This sideways consolidation was broken on the downside, indicating that a top has been made. There is also a rounding top pattern visible on the chart strengthening the case for a top in place. The region between ₹430 and ₹435 will act as a strong resistance now and cap the upside. Intermediate rise to this resistance zone is likely to get fresh selling interest in the market.

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There is room on the downside for the stock to fall towards ₹365-₹360 in the coming weeks. Traders can go short at current levels and also accumulate on a rise at ₹428. Stop-loss can be placed at ₹445. Trail the stop-loss down to ₹415 as soon as the stock moves down to ₹395. Move the stop-loss further down to ₹395 as soon as the stock price touches ₹380. Book profits at ₹370. The region around ₹360 is a strong support where the trend line is poised. The overall uptrend in the stock will remain intact as long as the stock sustains above ₹360. As such, a strong bounce from around ₹360 will mark the end of the corrective fall. It will also indicate the beginning of a fresh leg of up-move in the stock.

Published on November 13, 2021
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