Technical Analysis

Movers & Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on May 08, 2021

Hindalco Industries (₹401.1)

Breaks out of range

Since April 2020, the stock of Hindalco Industries has been rallying very strongly. Though there were intermittent price moderations, the major trend remained bullish, and the corrections were bought into. The last leg of rally was established in February this year from about ₹225. However, the rally lost steam in early March after reaching ₹360. Following this, the stock corrected a bit and started to move along a sideways trend i.e., it was largely oscillating between ₹325 and ₹375. The bulls seemed to lose momentum as the consolidation continued until last week. On Thursday, the stock broke out of ₹375, opening the door for further appreciation. It also moved above the ₹400-mark. So, one can be positive and buy with a stop-loss at ₹385; target can be ₹428.

Bharti Airtel (₹568.5)

Hits new 52-week high

After taking support at ₹400 in October last year, the stock of Bharti Airtel began moving northwards. After hitting a fresh 52-week high of ₹623 in early February, the scrip started to give up the gains. The decline extended till the end of March and the stock found support at ₹500, thereby losing nearly 20 per cent within two months. Nevertheless, after a brief period of consolidation, the stock resumed the uptrend and broke out of the resistance at ₹550 last week. Thus, the scrip has started to form higher highs over the past couple of weeks and the price action indicates further rally. Indicators like the RSI and the MACD are showing fresh uptick. Given these factors, traders can be bullish and buy with a stop-loss at ₹550; target can be ₹595.

JSW Steel (₹757)

In strong uptrend

The stock of JSW Steel has been posting steady gains since April last year after finding support at ₹140 levels. As a result, the stock had crossed over ₹400 in March this year. While the stock was consolidating between ₹400 and ₹430, it broke out of the range in April and the rally that followed was even steeper and by the end of last week, the stock broke out of a hurdle at ₹740 and closed at ₹757. The price action on the daily chart shows no sign of weakness and so the stock is set to extend the upward movement. The MACD on the daily chart continues to chart upward trajectory whereas the ADX signals that the uptrend is very strong. So, traders can buy the stock with a stop-loss at ₹720 and look for a target of ₹795.

Info Edge (₹4,677.3)

Exhibits bearish sign

The stock of Info Edge i.e., Naukri, witnessed a sell trend between mid-February and the end of March wherein the price dropped from about ₹5,550 levels to mark a low of ₹4,024. But since the price band of ₹4,000 and ₹4,025 provided support, the downfall was arrested and on the back of the same, the stock started to establish an uptrend. While it was appreciating until the end of April, the price level of ₹5,000 acted as resistance. Though the stock traded above this level briefly, it could not sustain above it and what followed was a decline. Thus, it has formed a lower high on the weekly chart and as it has been falling for the last couple of weeks, the outlook is bearish. Hence, one can sell the stock with stop-loss at ₹4,825; target can be ₹4,375.

HDFC AMC (₹2,718.6)

Marking lower lows

Since the beginning of 2021, the stock of HDFC Asset Management Company has been struggling to build a sustainable rally. The price pattern since January clearly shows a bearish inclination, consistently forming lower highs and lower lows. In line with this trend, the stock breached the support band of ₹2,780 and ₹2,800 which reinforces the bear trend. Substantiating the downward bias, indicators like the RSI and the MACD on the daily chart lie in the negative territory. Also, the ADX is indicating bears having the upper hand over the bulls. As long as the stock remains below the support band mentioned above, the trend will be bearish. Considering these factors, one can short the stock with a stop-loss at ₹2,810. Potential near-term target can be ₹2,560.

Published on May 08, 2021

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