Technical Analysis

Movers & Shakers: Stocks that will see action this week

| Updated on June 06, 2021

ONGC (₹125.4)

Hits fresh 52-week high

The stock of Oil & Natural Gas Corporation (ONGC) established an uptrend in November last year from about ₹65 and rallied to mark a high of ₹122.3 in early March. But it could not sustain above the resistance level of ₹120 and began to decline. The scrip fell considerably and marked a low of ₹97.4 in mid-April. Nevertheless, in the following couple of weeks, the stock was moving sideways and for the most part it stayed above the psychological level of ₹100. The bulls started to gain traction on the back of the support at ₹100 and started to head north. Last week, it gathered sufficient momentum to decisively breach the resistance at ₹120, thereby opening the door for further strengthening. Considering these factors, one can buy the stock with stop-loss at ₹120; target can be ₹134.

Bajaj Finance (₹5,993.4)

Sees fresh breakout

After facing a strong hurdle at ₹5,800 in mid-February, the stock of Bajaj Finance saw a sharp fall in price as it depreciated to mark a low of ₹4,362 in mid-April, thereby losing nearly 25 per cent within two months. This was the biggest decline since the March 2020 fall. However, the stock quickly reversed by taking support at ₹4,400 and began moving up at considerable pace. Though there was a bit of a slowdown when the scrip reached ₹5,800, apart from a brief period of sideways movement, the price did not fall. Last week, the stock broke out of the resistance at ₹5,800 and marked a fresh all-time high of ₹6,010 on Friday. Chart hints at further appreciation and so one can go long with a stop-loss at ₹5,775 for a potential target of ₹6,390.

HDFC (₹2,619)

Shows strong bullish bias

The stock of Housing Development Finance Corporation (HDFC) was gaining steadily since September last year, from about ₹1,630. The up-move took the stock to the fresh lifetime high of ₹2,896 in mid-February. But after hitting that level, the stock lost traction wherein it abruptly changed direction and went downhill. The decline continued till early May when it marked a low of ₹2,403. But noticeably, the bears started to lose momentum over the past month and as long as the stock remains above the support of ₹2,400, the bias will be bullish. Over the past couple of weeks, the stock has been gradually gaining and on Friday it closed above a key level of ₹2,600. Thus, the stock is likely to see more upside, hence traders can buy with stop-loss at ₹2,540; target can be ₹2,765.

Titan Company (₹1,679.5)

Breaks out of consolidation

The stock of Titan Company has been in a secular uptrend. Although it faced a substantial sell-off in March 2020, it quickly returned to the upward path and has been gaining steadily. But as the calendar year turned, the stock lost momentum and started to trace a horizontal trend. That is, it was largely oscillating between support at ₹1,400 and the resistance band of ₹1,580 and ₹1,610. The ongoing leg of rally began in early May from the support of ₹1,400 and after reaching the above-mentioned resistance band, the stock slowed down a bit. However, in the latter half of last week, it managed to breach the band with considerable volume, laying the foundation for another leg of an uptrend. So, traders can buy the stock with stop-loss at ₹1,600 for a target of ₹1,820.

Grasim Industries (₹1,503.2)

Registers fresh lifetime high

The stock of Grasim Industries has been in a strong uptrend since March 2020, as a result of which it gained from about ₹385 to ₹1,470 level. That is, the stock price nearly quadrupled in about one year. However, since early April, the stock has been witnessing sluggishness and in fact, it faced a corrective decline where the price moderated to ₹1,270. But it recovered from that level and the price action in the daily chart shows an ascending triangle pattern. Last week, the stock gained and breached the resistance at ₹1,470, thereby confirming the ascending triangle pattern. This is a bullish continuation pattern and so the scrip is likely to scale fresh heights. Also, it hit a fresh lifetime high of ₹1,507 on Friday, indicating strong momentum. So, buy with stop-loss at ₹1,440; target can be ₹1,600.

Published on June 06, 2021

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