Technical Analysis

Movers & Shakers: Stocks that will see action this week

| Updated on April 17, 2021

Dabur India (₹575)

Bulls in driver’s seat

The first two months of this calendar year have not been good for the stock of Dabur India as it witnessed a downswing. By the end of February, it had lost early 6 per cent for the year as it ended the month at ₹503. But when the stock was near the 200-day moving average at ₹500, the decline stopped and in fact, it started to move upwards. Though there was a blip initially, the stock gained momentum in the subsequent sessions and went on to break out of the previous high of ₹552 in early April and extended the rally. Last week too the scrip saw a steady increase in price wherein it marked a fresh lifetime high of ₹581.9 and looks bullish. Hence, buy the stock with a stop-loss at ₹560 for a target of ₹600.

Cipla (₹938)

Sees a fresh breakout

The stock of Cipla, which set its upward journey in April last year from about ₹370, rallied in the following months and by August it hit ₹800. Since the price band of ₹800 and ₹830 acted as a strong hindrance, the uptrend started to lose momentum and as a result, even though the scrip went past above these levels in early 2021, sustainability became an issue. Thus, the stock entered a sideways trend and the price action since the beginning of the year shows that the scrip has largely been trading in the band between ₹785 and ₹870. While it fell to ₹750 levels in mid-March, it quickly turned the direction of the trend and rallied past ₹870 and ₹900. The stock now looks bullish and so, one can go long with a stop-loss at ₹905; target can be ₹1,000.

Adani Transmission (₹991.2)

Uptrend regaining traction

The stock has been seeing a remarkable rally since last October. That is, from about ₹250 by then, the price surged rapidly and has quadrupled, considering the latest closing price. Though the rise was huge, the stock saw a slowdown between mid-February and mid-March this year where it was charting a horizontal trend between ₹720 and ₹850, but with a bullish bias. While it broke out of ₹850 in the final week of March and marked a new all-time high of ₹1,144.7 before a couple of weeks, the direction of the trend overturned, and the stock depreciated sharply to make a low of ₹860 last week. But on the back of the support of 21-day moving average, the stock rebounded strongly, hinting at more upside. So, buy the stock with a stop-loss at ₹920; target can be at ₹1,100.

Piramal Enterprises (₹1,720)

Chart hints at further dip

The stock of Piramal Enterprises, which started to rally in the final week of March last year, from about ₹610. It lost the plot in August as it failed to extend the rally after facing a strong hurdle at ₹1,570. Since then, the stock was tracing a sideways price movement where it was held between ₹1,250 and ₹1,570. Nevertheless, in early February this year, the scrip gained bullish momentum and started to rally on the back of the 200-day moving average, which was at ₹1,315. The run-up resulted in the stock touching the critical level of ₹2,000. But it was not able to crack this level and bears gradually began gaining traction. Consequently, the price started to moderate, and the stock has now fallen below key supports. Hence, go short with stop-loss at ₹1,800; target can be at ₹1,600.

Power Grid (₹209.8)

Closes below a support

The stock established a rally in mid-October last year from about ₹155 as a result of which it breached an important resistance at ₹185 and decisively breached the ₹200-mark in early February. But after hitting a fresh high of ₹238.3 in the same month, the stock began to soften. While ₹215 acted as support, the price level at ₹230 acted as a significant resistance and hence the stock was fluctuating within these levels until recently. The scrip broke below the support at ₹215 in the first week of April, giving it a bearish outlook. Although it rebounded taking the support at ₹200, the price action looks weak, and more decline can be seen in the upcoming sessions. So, traders can sell the stock with stop-loss at ₹216 for primary target of ₹200. Below this, it could touch ₹195.

Published on April 17, 2021

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