Movers and Shakers: Stocks that will see action this week

Timken India (₹2,198.75)

In a steady uptrend

The stock of Timken India is in a long-term uptrend. Nevertheless, it has been oscillating in a sideways trend i.e., between ₹1,850 and ₹2,140 since September 2021. But last week, it broke out of the range, hinting at the resumption of the uptrend. The breakout has occurred with considerable volume. In addition to this, the price remains above the 21- and 50-day moving averages. Going ahead, the stock is likely to gain further and could touch ₹2,400 in about three months.

It could even appreciate towards ₹2,600 before the end of this year. But there is a possibility of the scrip retesting ₹2,140 before rallying to the above-mentioned levels. Therefore, traders can buy the stock now and accumulate more when price dips to ₹2,140. Place initial stop-loss at ₹1,990. When the price rises above ₹2,400, tighten the stop-loss to ₹2,200. Exit the longs at ₹2,600.

Trent (₹1,262.05)

Sees fresh breakout

Although the major trend for the stock of Trent Limited is bullish, it has largely been moving in a sideways range since October 2021. The range of trade has been ₹1,000-1,200. Last week, the scrip decisively broke out of the resistance at ₹1,200, opening the door for further strengthening. But it could see a corrective decline to ₹1,150 before scaling new heights. On the upside, the stock has the potential to rally to ₹1,400 initially and it could then appreciate to ₹1,500 before the end of this year.

Given the above factors, one can buy the stock at current levels and add more shares when price dips to ₹1,150. Keep initial stop-loss at ₹1,075. When price rallies to ₹1,400, book three-fourths of the longs. Revise the stop-loss up to ₹1,250 for the balance holdings. Liquidate the remaining longs when price rallies to ₹1,500.

United Spirits (₹919.55)

Bulls look excited

The stock of United Spirits, after marking a six-month low of ₹765.2 in the first week of March, witnessed a sharp recovery. It looks more likely that the stock is aligning back with the long-term uptrend. By closing at ₹919.55 last week, it broke out of the resistance of ₹900 and has also invalidated a falling trendline resistance.

Henceforth, the stock will most likely rally past the high of ₹1,019.95 and reach ₹1,175 over the medium term. But note that it could fall to ₹860 before crossing over ₹960 and head towards ₹1,175. So, traders can go long in the stock at current levels and buy more when price declines to ₹860. While primary stop-loss can be placed at ₹800, alter it to ₹890 when price goes above ₹960. Tighten the stop-loss further to ₹950 on a decisive breach of ₹1,020. Liquidate your longs when the price touches ₹1,175.

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