Technical Analysis

Movers and Shakers: Stocks that will see action this week

Akhil Nallamuthu |BL Research Bureau | Updated on: Jun 25, 2022

Here is what the charts say about the shares of Coforge, HPCL and India Cements

Coforge (₹3,647.35)

Tracing a falling channel

The stock of Coforge Ltd has been falling since the beginning of 2022. It had faced resistance at ₹6,100. The scrip, which bounced over the past couple of weeks off the price level of ₹3,240, is currently trading at ₹3,647. Notably, it is now at the top of a rising channel, which is a resistance. Also, 50-day moving average resistance is at around ₹3,765. Therefore, the likelihood of a reversal from now is high. Even if there is a recovery, it can be limited to ₹3,900.

Traders can initiate shorts worth 75 per cent of the total intended amount now and add shorts for the remaining if price rallies to ₹3,900. Thus, the average shorting price would be ₹3,710. Place stop-loss at ₹3,950. Tighten it to ₹3,625 when price falls below ₹3,450. Liquidate all the shorts at ₹3,240.

HPCL (₹219.85)

Further fall likely

The stock of Hindustan Petroleum Corporation Ltd (HPCL) has broadly been trading in the broad range of ₹170-330 since early 2018. The latest leg of downtrend began in November 2021 from the range top. Since then, it has been dropping steadily. Although it posted a gain last week, it will most probably be a corrective rally and the scrip is expected to resume the fall.

The rally might probably extend to ₹232 but not beyond. Given the above factors, traders can short in two legs. That is, initiate short now and on a rally to ₹232 so that the average selling price would be around ₹226. Keep initial stop-loss at ₹250. When price dips below ₹200, alter the stop-loss to ₹220. Exit the shorts when the stock touches ₹170 since there can be a bounce of this support.

India Cements (₹158.1)

Stays below key level

The stock of India Cements witnessed a bearish trend reversal in January this year after facing resistance at ₹255. It has been falling since then and as an extension of the down-move, the stock price fell below an important level of ₹165 a month ago. As the scrip sustains below this level, the chances are high for it to see a decline from here. But there could be a minor rally to ₹165 before falling below ₹145. Therefore, one can short the stock now and on a rally to ₹165.

The average short price would then be ₹162. Initial stop-loss can be at ₹175. Tighten it to ₹150 when price slips below ₹131. On a decline to ₹124, book 50 per cent of the total shorts and then revise the stop-loss to ₹145. Liquidate the remaining shorts when price touches ₹115.

Published on June 25, 2022
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you