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Aarti Drugs (₹445.3)
In a downtrend
The stock of Aarti Drugs has been in a steady downtrend since May 2021. It made a high of ₹841 in May last year and has been falling consistently since then. It breached the support at ₹500 a couple of weeks back. and Going forward, it looks set to extend the decline.
The immediate support from the current level can be spotted at ₹360. If this level is invalidated, the stock could see its price falling swiftly to ₹310. But before beginning the next downswing, the scrip could inch up to ₹490 where it could see fresh sellers coming in. Therefore, one can sell the stock now and short more if price moves up to ₹490 with initial stop-loss at ₹535. When price touches ₹360, exit three-fourth of the shorts and tighten the stop-loss to ₹385 for the balance holdings. Exit the rest at ₹310.
Apollo Tyres (₹174.4)
Outlook turns bearish
The stock of Apollo Tyres began consolidating in February 2021. Until a fortnight ago, it was largely oscillating within the price range of ₹200 and ₹245. But the support at ₹200 was breached and the stock is sustaining below this level over the last two weeks.
Although there could be a corrective rally to ₹200 from the current levels, the scrip will eventually turn downwards and fall to the nearest support at ₹146. Subsequent support can be seen at ₹130. Given the above factors, traders can consider going short on the stock at current level and add more shorts when price moves up to ₹200. Place initial stop-loss at ₹212. When the stock fall to ₹146, liquidate two-thirds of your position and revise stop-loss to ₹165. Book profits on the remaining shorts when price dips to ₹130.
IFB Industries (₹843.4)
Breaches a key support
The rally in the stock of IFB Industries between August and October last year, which began at around ₹900, could not extend beyond the resistance at ₹1,340.
After a brief period of consolidation, the stock started to depreciate. Last week, it breached the key support of ₹900. This is expected to give a boost to the prospect for sellers. Sell-off could accelerate and the stock could drop to the nearest support at ₹700. A breach of this level can drag the stock down to the next support at ₹635. But note that there could be a corrective rally to ₹940. So, traders can sell now and short more if price rises to ₹940. Keep the stop-loss at ₹1,020. When price falls to ₹700, exit two-thirds of the shorts and alter stop-loss to ₹760 for the rest. Exit the leftover at ₹635.
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