Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on November 20, 2021

Avenue Supermarts (₹5,080.9)

Bulls regaining traction

The stock of Avenue Supermarts, which is on a long-term uptrend, witnessed a sharp drop from a high of ₹5,900 to ₹4,351. But, thereafter it resumed the up-move and is above the important level of ₹5,000. The price action hints at further appreciation. However, an intermediate correction to ₹4,830 cannot be ruled out. Traders can buy the stock at current levels and accumulate at ₹4,830. Place initial stop-loss at ₹4,620. On the upside, the stock has potential to move to ₹5,700 with a minor pause at ₹5,500. Thus, traders can exit half of the longs when stock reaches ₹5,500. Thereafter, shift the stop-loss to ₹5,300 and exit the remaining positions when price hits ₹5,700. If the stock rises above ₹5,250 without softening to ₹4,830, maintain stop-loss at ₹4,950.

ABFRL (₹284.7)

At a significant support

The stock of Aditya Birla Fashion and Retail Limited (ABFRL) has been on a steady uptrend since May 2020. This rally has breached the multi-year resistance of ₹280 and sustains well above this resistance-turned-support band of ₹270-280. Despite a price correction last week, the trend remains bullish. The scrip is expected to rebound from current levels. The 21-day moving average and a rising trend line coincide within this price band, making the support stronger. So, one can buy the stock at current level and accumulate more at ₹270 with stop-loss at ₹260. Book 50 per cent profit when the stock appreciates to ₹310, which is the previous high. At this juncture, revise the stop-loss to ₹295 for the rest of the holdings and look for next target of ₹325.

JSW Energy (₹295.3)

Breaches a support

The stock of JSW Energy saw a sharp rally in 2021 and in mid-October it marked a fresh lifetime high of ₹408. However, the uptrend lost momentum and the stock is on a descent. Last week, it slipped below a rising trend line and broke the support at ₹300, opening the door for further weakness. The RSI and MACD also indicate bearishness, and the trend will be bearish until price stays below ₹335. Moreover, the 21-day moving average has gone below 50-day moving average, indicating a potential shift to medium-term downtrend. Hence, traders can short at current level and sell again if it rises to ₹320. Initial stop-loss can be at ₹340. From the current level, the nearest support can be spotted at ₹250, where one can exit shorts. Revise stop-loss to ₹295 when price drops below ₹270.

NAM-India (₹403.4)

Downtrend set to extend

The stock of Nippon Life India Asset Management (NAM-India) was on an uptrend since September 2020 after taking off from the support at ₹250. But the trend reversed in October this year after registering a high of ₹476.5. Last week, the downtrend gained further momentum and broke below the rising trend line and looks set to extend the decline. Supports are at ₹378 and ₹360. The bear trend is corroborated by the RSI and the MACD on the daily chart as they lie in the negative territory. So, one can short the stock at current levels and at ₹418. Keep stop-loss at ₹430 and exit half of the positions at ₹378, revise the stop-loss to ₹400 for the rest. Carry the remaining shorts to the subsequent target of ₹360.

Godrej Consumer Products (₹919.6)

Bears having the upper hand

The stock of Godrej Consumer Products, after moving above ₹1,000 in August this year, made a fresh high of ₹1,138 in mid-September this year. But thereafter it failed to retain the momentum and reversed downwards, breaking below the ₹1,000-mark. The price action indicates that the stock is likely to depreciate more from current levels. Nearest supports are at ₹820 and ₹760. The 21-day moving average, currently at ₹975, has been acting as a strong resistance and the stock will be weak until the price stays below it. It might retest this level. So, sell the stock at current level and accumulate shorts at ₹975. Initial stop-loss can be at ₹1,015. When the stock declines to ₹820, book half of the profit and shift the stop-loss to ₹875. Remaining shorts can be liquidated at ₹760.

Published on November 20, 2021

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