Technical Analysis

Movers & Shakers: Stocks that will see action this week

| Updated on April 04, 2021

UPL (₹653.6)

Breaks out of a range

After a three-week sluggish period, the stock of UPL broke out of the resistance of ₹640 last week, opening the door for further strengthening. The stock has been rallying since March last year after bottoming out at ₹240 levels and on Thursday, the scrip made a fresh 52-week high of ₹656.9. While the stock has been consolidating over the past one month, the support at ₹600 stood strong, preventing any decline and the 21- as well as 50-day moving averages have been providing good support. The relative strength index and the moving average convergence divergence indicators on the daily chart remain in their respective bullish territory. Traders can be bullish and buy the stock with a stop-loss at ₹630. It is likely to appreciate towards the resistance at ₹690.

Hindalco Industries (₹350.2)

Bulls show renewed momentum

The stock of Hindalco Industries, which began its previous leg of rally from about ₹226 in early February, witnessed a sharp uptrend. As a result, the scrip hit a new high of ₹361.3 in early March. However, it then took a downward path wherein it gradually moderated. While ₹326 acted as a support, the price dipped below this level before a couple of weeks. Nevertheless, the stock took support at ₹310 from where it bounced back last week and broke out of the hurdle at ₹343 with good volume. This breakout shows that the bulls have regained the momentum and so the price can rise further. Moreover, the major trend is bullish as well. Considering these factors, traders can initiate fresh long positions in the stock with a stop-loss at ₹335 for a target of ₹376.

Grasim Industries (₹1,454.5)

Marks fresh lifetime high

The stock of Grasim Industries, which started to recover in April last year post a substantial fall, faced several roadblocks in the subsequent months. But in mid-August the stock established an uptrend that is still steady, and has been consistently making higher highs and higher lows. The appreciation in price has rather been steady throughout, instead of sharp intermittent rallies. The 21-day moving average is acting as a strong dynamic support and the stock has rebounded as and when it hit the average. The stock has made a fresh breakout of ₹1,420, which has been blocking the bulls for the past couple of weeks. This has increased the chances of the rally being extended and so, traders can buy the stock with a stop-loss at ₹1,410; target can be ₹1,510.

Tata Consumer Products (₹650.1)

Cracks a key resistance

Even before the March 2020 fall, the stock of Tata Consumer Products has been on an uptrend. Hence, after facing a deep correction a year ago, the stock was able to re-establish the uptrend quickly and then it continued to head north. Over the past year, the scrip has seen three major corrective declines, the latest being the fall that occurred in March this year. The decline was a consequence of the stock being blocked several times by the resistance at ₹640. Nevertheless, the depreciation was limited by the support at ₹580 against which the stock resumed to rally. The stock finally breached the hurdle of ₹640 with considerable volume in the past week. Thus, the stock is bullish and so one can go long with a stop-loss at ₹625; target can be ₹690.

Divi’s Laboratories (₹3,616.1)

Bulls making a comeback


The stock of Divi’s Laboratories, which has been on an uptrend in the past one year, started to exhibit signs of weakness since the beginning of 2021. That is, the scrip peaked at ₹3,915 in early January and was on a downhill until mid-March. As it declined, it breached the support of ₹3,570 and ₹3,330 and made a low of ₹3,153 before two weeks. But since the 200-day moving average offered strong support at ₹3,150 levels, the stock rebounded and moved past the support-turned-resistance levels of ₹3,330 and ₹3,570, which resulted in the stock forming a higher high after about three months. It stock is now above 21- and 50-day moving averages and the price action hints at more scope on the upside. So, buy the stock with a stop-loss at ₹3,500 and target at ₹3,800.

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Published on April 03, 2021
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