KPR Mill (₹589.4)
The stock of KPR Mill has been on an uptrend since August 2020 after breaking out of ₹100. There were intermittent corrections along the way which were not deep and thus, the rally seems very healthy. So, the likelihood of further appreciation is high. In the coming weeks, the stock is likely to cross over the lifetime high of ₹647, made last week, and touch ₹670. It has the potential to gain towards ₹720 over the medium term. But a price correction to ₹550 cannot be ruled out. Therefore, one can buy at current level and accumulate more when price dips to ₹550. Keep initial stop-loss at ₹520. When the stock reaches ₹670, consider booking 50 per cent of the positions and then revise the stop-loss to ₹600. Liquidate the remaining longs when the scrip rallies to ₹720.
Persistent Systems (₹4,640.1)
Fresh breakout seen
The stock of Persistent Systems has been on a long-term uptrend since March 2020. This uptrend paused in October this year and the stock was consolidating sideways between ₹3,750 and ₹4,500. However, last week, it broke out of ₹4,500 with significant volume. Against the backdrop of long-term uptrend, the stock is poised to witness another leg of upmove towards ₹5,075. The Fibonacci extension hints at a potential move to ₹5,130 over the medium term. Yet, from here, it could see a decline to ₹4,420 before hitting fresh highs. Hence, traders can buy the stock now and also buy when price moderates to ₹4,420. Place initial stop-loss at ₹4,200. Liquidate 50 per cent of the positions at ₹5,075. Thereafter, modify stop-loss to ₹4,850 for the rest and exit them at ₹5,130.
Outlook turns bearish
The stock of Indian Oil Corporation (IOC) saw the last leg of rally between the final week of August and mid-October. During this period, it appreciated from about ₹100 to ₹140. Unable to break past this level twice, the scrip started to descend. Last week, it broke below a key support at ₹117, turning the outlook negative. The downtrend appears strong. In the coming weeks, it is likely to drag the stock further lower with nearest support at the price band of ₹100-₹103. Nevertheless, the stock could retest the support-turned-resistance level of ₹117 before falling towards the support band mentioned above. Given that, traders can short the stock at current level and add shorts when it rises to ₹117. Place initial stop-loss at ₹121. Exit all the shorts at the upper end of the support band i.e., ₹103.
City Union Bank (₹140)
Below a key support
The stock of City Union bank, ever since hitting the resistance at ₹190 in November last year, has been moving with a downward bias. While it rebounded from the support at ₹144 in August this year, the rally did not sustain. The scrip began falling again from ₹175 in November this year. Last week, it slipped below the crucial support of ₹144 and thus, the chances of a steady fall from here are high. Although there is a minor support at ₹130, the stock can be expected to depreciate to ₹120 in the next two-three months. But we could see a pull-back to ₹144 before falling further. Therefore, one can short the stock at current levels and at ₹144. Keep the stop-loss at ₹152. When it slips below ₹130, revise the stop-loss to ₹138. Exit fully at ₹120 as it is a significant support.
Bajaj Finserv (₹16,204.2)
Bears have the advantage
The long-term trend of the stock of Bajaj Finserv is up and in line with this it had stayed in the upward trajectory in 2021, till September. But after that it started to chart a horizontal trend and was largely fluctuating between ₹16,700 and ₹19,000. Last week, it broke below ₹16,700 and the latest down-move began after facing a falling trend line resistance at around ₹17,800. The short-term trend is now bearish, thus the scrip can be expected to fall further. The immediate support is at ₹15,700. But this is likely to be breached and the stock could decline to ₹14,620. So, traders can take a bearish view and sell at current levels. Add more shorts if price rises to ₹16,900. Place the stop-loss at ₹17,500. Shift it to ₹16,700 once the stock falls below ₹15,700. Liquidate the shorts entirely at ₹14,620.