Movers and Shakers: Stocks that will see action this week

Bharat Electronics (₹239.6)

Cracks above a barrier

The stock of Bharat Electronics was charting a horizontal trend, oscillating in the ₹190-225 range since October last year. That said, price action hints at considerable accumulation in the band of ₹190-200 in the last five months. On the back of this, the scrip started to appreciate and broke out of ₹225 last week. This has strengthened the bullish case. Hence, going ahead, the price is likely to go up, possibly to ₹270 within a couple of months. But trading plan should accommodate the likelihood of a price correction to ₹225 as a retracement is common post breakouts.

So, we recommend participants to take exposure to this stock at current level and accumulate on a dip to ₹225. Place stop-loss at ₹210 and tighten it to ₹235 when the price goes above ₹254. Liquidate all the longs at ₹270.

HAL (₹1,620.2)

Breaches a hurdle

The stock of Hindustan Aeronautics Limited (HAL) bounced off the support at ₹1,260 two months ago. The rebound had enough momentum to breach the hurdle at ₹1,300. Increasing volume can be observed along with the upmove, signalling a sustainable rally. Possible course of rally would be that the stock appreciates to ₹1,800 in a month and then see a minor dip. Then we expect it to eventually break out of ₹1,800 and touch ₹1,950 in the next three to four months. But one should also be prepared for a corrective decline to ₹1,500 before the ascent to ₹1,800 happens. Given this, traders can equally split the entries into two legs.

Buy now at current level of ₹1,620 and then accumulate at ₹1,500. Keep an initial stop-loss at ₹1,400. When the stock moves above ₹1,800, modify the stop-loss to ₹1,680. Fully exit at ₹1,950.

Tata Power (₹278.1)

Bull flag breakout

The stock of Tata Power has largely been oscillating within ₹205 and ₹255 since October 2021. But then, last week, it broke out of this range. This breakout also confirms a bull flag – a bullish continuation pattern. Thus, the stock seems to be building up fresh momentum that can lift it up further. While the stock is trading in uncharted territory, the Fibonacci extension indicates potential hurdles at ₹310 and ₹330. But before rallying to these levels, the scrip could see a minor dip, possibly towards the band of ₹254-258. So, trades can be planned accordingly.

Buy for about half of the intended amount at the current level of ₹278. Invest the remaining half when price softens to ₹258. Initial stop-loss can be kept at ₹238. Revise this up to ₹285 when price tops ₹310. Book profits at ₹330.

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