Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu | | Updated on: Nov 27, 2021
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P&G Hygiene ( ₹15,118)

Sustains above key level

The stock of Procter & Gamble Hygiene and Health Care broke out of consolidation range of ₹12,330 and ₹14,000 in early September this year. Prior to this, it had began the rally from about ₹9,800. Thus, a bullish flag pattern emerged on weekly chart, indicating further appreciation. Moreover, despite broader market sell-off, the stock is able to sustain above key levels of ₹14,000 and ₹15,000. While a correction to ₹14,000 is a possibility, the scrip is expected to resume the up-move and touch ₹17,000, possibly ₹18,200, within three months. So, traders can buy the stock at current level and accumulate at ₹14,000 with an initial stop-loss at ₹13,440. When the stock reaches ₹17,000 exit 75 per cent of the positions. Thereafter, shift the stop-loss to ₹16,000 for the rest and exit them at ₹18,200.

Adani Green Energy ( ₹1,372.6)

Stays above support

The stock of Adani Green Energy has been rallying since early August after taking support at ₹878. Notably, it was in a consolidation phase in September and October between ₹1,110 and ₹1,236. It broke above ₹1,236 a couple of weeks ago and thus, the price action — a rally followed by a consolidation and a breakout — is a bullish indication. In the coming weeks, the scrip is expected to strengthen further and touch ₹1,500 and ₹1,525. Nevertheless, the stock could see a dip to ₹1,300 before reaching the mentioned levels. So, traders can go long at current level and buy more at ₹1,300. Keep stop-loss at ₹1,250. When the stock moves up to ₹1,500, liquidate three-fourth of the longs. Then revise the stop-loss to ₹1,450. Exit the remaining positions at ₹1,525.

PFC ( ₹119)

In strong downtrend

The stock of Power Finance Corporation (PFC) has reversed the trend after hitting a fresh 52-week high of ₹153.75 in October. It has been on a strong decline since then. The stock broke below ₹131 a week ago, thereby confirming a head and shoulder (H&S) pattern. It also breached the 200-day moving average at ₹127. Thus, the outlook turned bearish for the stock and it is likely to extend the decline. The nearest support is at ₹109, a price level which is the target as per the H&S pattern. A drop to the subsequent support at ₹105 is a possibility. Hence, one can short at ₹119 and short again at ₹123 and place the stop-loss at ₹128. Consider booking profits for 75 per cent of the positions when the stock drops to ₹109. Post this, revise the stop-loss to ₹115 for the rest and exit them at ₹105.

ICICI Prudential Life ( ₹589.9)

Registers lower low

The stock of ICICI Prudential Life insurance registered a fresh lifetime high of ₹724.3 in September. However, it made a U-turn and started to trend downwards. Although there was a rally during the first half of October, the stock resumed the decline after facing a hurdle at ₹680; it made a lower low last week. The momentum looks strong, and the stock will most likely depreciate to ₹538. Although ₹568 is a minor support it is less likely to arrest the fall. But the stock could witness a minor corrective rally to ₹610. Considering these factors, one can sell the stock at current level and at ₹610. Place stop-loss at ₹632 — its 21-day moving average. Once the price drops below ₹568, shift the stop-loss down to ₹600. Liquidate the entire position when the stock declines to ₹538.

Balkrishna Industries ( ₹2,165)

Slips below support

The stock of Balkrishna Industries, which has been appreciating since the beginning of the year, lost momentum after marking a fresh all-time high of ₹2,723.8. It then turned the trend downwards and has been on a steady decline. Last week, it fell below the support at ₹2,236 and before a couple of weeks, the 21-DMA slipped below 50-DMA — an indication of potential shift in the medium-term trend downward. Although ₹2,000 is a psychological level, the stock will most likely break below it and depreciate to ₹1,850. Since the momentum looks good, this fall can occur within a month. So, one can short at current level and sell more if it rallies to ₹2,236. Place stop-loss at ₹2,335. Exit the shorts when the price drops to ₹1,850. When the scrip falls below ₹2,000, revise stop-loss to ₹2,150.

Published on November 27, 2021

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