Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu |BL Research Bureau | Updated on: Apr 02, 2022

Here is what charts say about Adani Enterprises, Cummins India and The Indian Hotels & Co. shares

Adani Enterprises (₹2,043.65)

Crucial resistance breached

The stock of Adani Enterprises is on a long-term uptrend. Although it rallied past the hurdle at ₹1,750 in early March, the scrip could not sustain above that level and fell back below it. But on the back of recent bullish build-up, the stock decisively broke out of the resistances at ₹1,750 and ₹1,900 last week. Thus, the stock will most likely start a fresh leg of rally from here.

While ₹2,230 is the nearest resistance, the stock has the potential to appreciate to ₹2,550 over the medium term. But note that there could be a correction to ₹1,800 as the current rally has been sharp. Therefore, traders can buy the stock at current level and add more to holdings when price dips to ₹1,800. Keep initial stop-loss at ₹1,600. When price moves above ₹2,230, revise the stop-loss to ₹1,950. Book profits at ₹2,550.

Cummins India (₹1,136.7)

Hits fresh one-year high

The overall trend for the stock of Cummins India is bullish. However, after reaching ₹1,060 last year, the bulls lost steam and started to trace a sideways trend. Until last week, that is when the breakout of ₹1,060 occurred, the stock was largely moving within ₹870 and ₹1,060.

Now that it has invalidated the resistance at ₹1,060, the chances are high for the price to breach the previous high of ₹1,247.65 registered in August 2015 and make new highs. Resistances above this level are at ₹1,280 and ₹1,350. But before surpassing ₹1,247.65, it might see a retracement to ₹1,020. So, traders can go long now and accumulate on a dip to ₹1,020. Keep an initial stop-loss at ₹960. When the scrip goes past ₹1,280 alter the stop-loss to ₹1,190. Exit all the longs when price touches ₹1,350.

The Indian Hotels Co. (₹240.6)

Bullish continuation pattern

The stock of The Indian Hotels Company, which has been on an uptrend with minor intermittent corrections since May 2020, lost traction in October last year after reaching ₹225. Consequently, it started to oscillate within ₹180 and ₹225. Yet, the stock moved above the resistance at ₹225 last week, supported by considerable volumes.

Going ahead, the stock might see a minor dip to ₹220 within a week or two. But eventually it can appreciate to ₹270 initially and then to ₹290 before the year-end. Given this, one can buy the stock here and accumulate when price drops to ₹220. Place stop-loss at ₹200 initially, but tighten it to ₹240 when scrip rises above ₹270. Liquidate all your holdings at ₹290, because the price area of ₹290-300 can be a barrier from where the stock can see a reversal.

Published on April 02, 2022
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