Technical Analysis

Movers & Shakers: Stocks that will see action this week

Akhil Nallamuthu BL Research Bureau | Updated on May 30, 2021

CONCOR (₹667.6)

Breaches a multi-year high

The stock of Container Corporation of India (CONCOR) began a fresh leg of rally in early 2021 from about ₹400. The scrip appreciated and in early March it marked a new high of ₹643.9 from where it faced a minor correction. Though it did not witness a bearish reversal, the stock started to move across a horizontal price pattern. It was largely oscillating between ₹550 and ₹625. Last week, the stock gained considerable bullish momentum and decisively breached the resistance at ₹625, opening the door for further rally. Since the trend prior to the consolidation phase was up too, the stock will most likely extend the gain, going ahead. The breakout was accompanied by higher volume. Hence, traders can consider going long in the stock with a stop-loss at ₹638 for a target of ₹715.

Wipro (₹538.7)

Bulls in driver’s seat

The stock of Wipro has been in an uptrend since March 2020 when it reversed after seeing a sharp fall to about ₹160. The scrip extended the rally in 2021 as well. However, after making a high of ₹467.4 in mid-January, the stock lost the momentum and consequently, it started to depreciate gradually. By the end of March, the stock had corrected to the support level of ₹400. This price level acted as a solid support on the back of which the stock started to align with the major uptrend. Since then, it has been gradually moving upwards and while there was minor correction a couple of weeks back, the stock regained traction last week and broke out of the prior high at ₹528.5, turning bullish. So, traders can buy with stop-loss ₹520; target can be ₹564.

Bank of Baroda (₹83.8)

Uptrend gaining traction

The stock of Bank of Baroda, which rallied sharply between last November and February, rose from about ₹42 to ₹99.35 — its 52-week high. However, it overturned the trend abruptly and started heading downwards with considerable pace. That is, from the high of ₹99.35 it declined to hit a low of ₹64.2 within a couple of months, losing a little over 35 per cent. But ₹65 being a support, the down-move was arrested and in the following weeks, the stock started to recover. In less than two weeks, the stock moved past both 21- and 50-day moving averages, a bullish sign. Last week, the stock broke out of the hurdle at ₹80 and was able to sustain. Given these factors, one can buy with a stop-loss at ₹80; target can be ₹89.

Mahindra & Mahindra (₹845.9)

Shows bullish inclination

After breaking out of consolidation range of ₹590 and ₹650 in November last year, the stock of Mahindra & Mahindra moved up and marked a fresh all-time high of ₹952 in early February. But thereafter the scrip was in a correction mode where it slipped below both 21- and 50-day moving averages before two months. The decline was then stopped at near ₹735 as it provided support. Bears attempted to breach this level thrice since April, but were unable to do so, indicating that the support is very strong. Against this support, the stock, after moving sideways briefly, picked up momentum before a couple of weeks. The price rallied, and the stock moved past resistance of ₹800. Chart appears bullish, traders can buy the stock with stop-loss at ₹815; target can be ₹900.

Piramal Enterprises (₹1,785.9)

Reverses upwards

Failing to move beyond critical resistance at ₹2,000, the stock of Piramal Enterprises began moving downhill early March this year. The downtrend extended until it found support at ₹1,615 in April. After this level, the stock began moving in a sideways trend, oscillating between ₹1,615 and ₹1,750. Last week, it broke out of the resistance at ₹1,750, where the 50-day moving average coincide, with high volume turning the outlook positive. Supporting the same, indicators like relative strength index and moving average convergence divergence on daily chart entered respective positive territory. In view of these factors, traders can initiate fresh long positions with a stop-loss at ₹1,715. The stock has potential to touch ₹1,900 in near term, so this can be the target for longs.

Published on May 30, 2021

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