Comments
Cipla (₹1,044)
Hits record high
The stock of Cipla, after marking a low of ₹354 in March 2020, reversed and established a strong uptrend. However, since May 2021, it has been moving sideways between ₹860 and ₹1,000. But last week, it broke out of ₹1,000 after ten months of consolidation, opening the door for further rally. The stock can be expected to touch ₹1,140 in the next one or two months.
Eventually, it will break out of that level and rally to ₹1,230 in the medium term. But before that it might face a corrective decline to ₹1,000. So, traders can buy the stock now and on a dip to ₹1,000 with initial stop-loss at ₹940. When the price reaches ₹1,140 liquidate half of the longs and revise the stop-loss to ₹1,050. Tighten it further to ₹1,140 if the scrip moves above ₹1,200. Exit remaining longs at ₹1,230.
SBI Cards (₹806.3)
Tests a resistance
The stock of SBI Cards and Payment Services, which has been in a downtrend since October 2021, breached the key support at ₹800 a fortnight ago. But after marking a low of ₹712, the stock has now moved to test ₹800 level. But the stock is likely to reverse lower from here. If at all there is extension of current corrective rally, it may not be beyond ₹860.
On the downside, the stock will most probably fall below ₹712 and decline to ₹600 over the medium term. So, one can initiate shorts worth three-fourth of the intended quantity at current level and add remaining shorts at ₹860. Place stop-loss at ₹930. When price falls below ₹700, alter stop-loss to ₹775. Bring it further down to ₹720 when the scrip touches ₹650 and book three-fourth of the positions. Exit the leftovers at ₹610.
P&G Health (₹4,378.7)
Strong downward momentum
The stock of Procter & Gamble Health is on a strong downtrend since early 2021. From the high of ₹7,500 made in February 2021, the stock has now fallen to ₹4,378.7 and the price action indicates further drop, going ahead. But notably, the price area of ₹4,350-4,440 is a support band and so, there could be a corrective rally from here, possibly to ₹4,850. Then again, the scrip is expected to resume the downswing, which can pull the stock down to ₹3,900 initially and then to ₹3,370 over the medium term.
Therefore, traders can short the stock now and add more shorts when price rises to ₹4,850. Place initial stop-loss at ₹5,220; when price falls below ₹3,900, tighten stop-loss to ₹4,200. Move it further down to ₹3,900 when the stock touches ₹3,600. Exit all the shorts at ₹3,400.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.