Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu | | Updated on: Dec 04, 2021
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Bajaj Holdings & Investment (₹5,423.7)

Forms new all-time high

The stock of Bajaj Holdings & Investment is on a long-term uptrend. Within this uptrend, the stock had moved sideways since the last week of September. It has largely been oscillating between ₹4,650 and ₹5,100. Last week, it broke out of this range with considerable volume and thus, the stock will most likely witness another leg of upmove from here. Given the momentum, the stock has the potential to touch ₹6,000 in the next three months or so. Yet, there can be intermediate decline to ₹5,150. Hence, traders can buy at current level and also accumulate at ₹5,150. Place stop-loss at ₹4,950. When the stock reaches ₹5,800, book 75 per cent of the positions. Thereafter, revise the stop-loss to ₹5,600 for the rest. Exit the remaining longs at ₹5,950.

Vodafone Idea (₹14.45)

Sees a strong breakout

The stock of Vodafone Idea saw a huge fall in price in 2018 and 2019. But since 2020, the stock was charting a broad sideways trend. The price band of ₹12.8 and ₹13.6 has been blocking the bulls from gaining beyond these levels. However, last week, the scrip decisively breached these levels with significant volumes and made a multi-year high of ₹14.7. The chart suggests a clear bullish trend reversal wherein the stock can appreciate to ₹20 in the medium term. Post breakout, there could be a pull-back from here. So, one can go long at current price and buy more if price drops to ₹13.4. Keep stop-loss at ₹11.9. When the stock hits ₹18, exit 75 per cent of the total longs and revise the stop-loss to ₹16. Liquidate the remaining positions when it rallies to ₹20.

Oberoi Realty (₹855)

Downtrend set to resume

The stock of Oberoi Realty, which registered a fresh lifetime high of ₹1,051.9 a month ago, could not extend the up-move. Since then, it has been on a decline which led to the breach of the support at ₹860. Although the price inched up last week, it appears to just be a corrective rally. Hence, in the coming sessions, the scrip can be expected to resume the downtrend. While ₹754 is the nearest support, the stock is likely to touch ₹715 within a couple of months. One can initiate fresh short positions at current level and add more shorts if stock rises to ₹875. Stop-loss can be placed at ₹920. When the scrip depreciates to ₹754, exit three-fourth of the short positions. Then shift the stop-loss to ₹800 for the remaining and liquidate them at ₹715.

Alkem Laboratories (₹3,438.8)

Trend remains bearish

After marking a new all-time high of ₹4,070 in September, the stock of Alkem Laboratories consolidated briefly, and then turned the trend downwards. The stock broke below the support at ₹3,535 a couple of weeks ago and declined further. Even though it appreciated last week from the low of ₹3,244, the trend remains bearish with strong hurdle in the ₹3,535 - ₹3,600 price area. Given the above factors, the stock is likely to fall from here and slip below the prior low of ₹3,244. It can touch ₹3,100 in the near term. Thus, one can short at current levels and at ₹3,535 with an initial stop-loss at ₹3,660. On the downside, when the stock falls below ₹3,244, revise the stop-loss to ₹3,400. Consider exiting fully at ₹3,100 since there can be a bounce off this level.

IndusInd Bank (₹951.1)

Likely to fall further

The stock of IndusInd Bank, which has been on an uptrend since March 2020, made a fresh 52-week high of ₹1,242 in the last week of October this year. However, since then, the stock has been declining swiftly. The scrip fell below the support of ₹975 in November thereby turning the near-term outlook bearish. While the stock rallied last week, it is less likely to go beyond ₹975. More sellers could come in as the price moves up. Therefore, the stock will most probably witness a down-move from here and can be dragged to ₹825 — a significant support. Thus, one can sell at current level and at ₹975 with stop-loss at ₹1,030. When price declines below ₹870, move the stop-loss down to ₹900. Liquidate the positions when the stock touches ₹825.

Published on December 04, 2021

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