Technical Analysis

Movers & Shakers: Stocks that will see action this week

Akhil Nallamuthu | Updated on June 13, 2021

Power Grid (₹246.3)

Hits fresh lifetime high

The stock of Power Grid Corporation of India, which attempted to recover after facing a sharp downtrend in March last year, was largely trading in a sideways band as the bulls and bears fought it out. That is, the scrip was largely trading in the broad range of ₹155 and ₹185. But as the calendar turned to 2021, the bulls started to gain ground and helped the stock in breaching the strong hurdle of ₹185. In February, the stock decisively rallied past the ₹200-mark, giving it a psychological boost. But after hitting ₹238, the stock declined sharply towards ₹200 in April. But this being a support, the stock started to re-establish an uptrend. Consequently, the price began moving upwards and broke out of ₹240. Thus, one can buy with stop-loss at ₹238; target can be ₹260.

Coal India (₹162.6)

Witnesses a bullish close

The stock of Coal India has largely been an underperforming one since March lows. While most of the large-cap stocks rallied, this remained in a broad consolidation range. That is, it has been fluctuating between ₹120 and ₹155. When the scrip reached ₹155 in mid-May, it faced stiff resistance and as a result, it softened to ₹145. But the bulls regained sufficient momentum to break out of ₹155 and it closed at ₹162.6 last week. The breakout has occurred with significant volume and thus this could be the beginning of the fresh leg of an uptrend. Therefore, one can consider initiating fresh long positions at least for the short term. Buy the stock with a stop-loss at ₹156. On the upside, the stock is likely to appreciate to ₹172, above which it can touch ₹185.

Godrej Consumer Products (₹899.5)

Sees strong upward drive

The stock of Godrej Consumer Products, which was trading in a sideways trend during the second half of 2020, tried to establish a rally in early 2021 as it invalidated the hindrance at ₹760. However, the scrip could not appreciate beyond ₹800 and at those price levels, sellers started to creep in and pulled the price downwards. Hence, it declined to ₹650 by mid-March. Although there was a minor recovery, the stock was largely flat in April. But before a month, it saw a substantial gap-up following which there was a rally. Due to this, the resistance at ₹800 was clearly breached. Though there was a correction after this rally, the stock regained traction and made a fresh high last week. The chart looks bullish, so buy with stop-loss at ₹870 and target at ₹950.

Dr. Reddy’s Laboratories (₹5,453)

Moves out of consolidation

The year 2021 had not been good for the stock as it has been only witnessing a decline in price. That is, after reaching the resistance of ₹5,450 the stock started to move downhill steadily. As a consequence, it marked a low of ₹4,135 in mid-March, thereby losing about 24 per cent from the top made in early 2021. But the stock quickly reversed the trend and crossed over ₹5,300 before a month. Since then, it has been oscillating between ₹5,150 and ₹5,350. On Friday, the stock rallied and broke out of the range and closed at ₹5,453. Although ₹5,450 can act as a roadblock, the momentum seems to be strong and could take the stock through this level with ease. Hence, traders can go long in the stock with a stop-loss at ₹5,250 for a target of ₹5,775.

Dabur India (₹565.2)

In strong upward momentum

After registering a lifetime high of ₹581.9 in April, the stock began weakening where it fell to ₹520 level in May, i.e., it lost nearly 11 per cent in the span of one month. But ₹520 being a strong support stopped further depreciation in price. The 200-day moving average coincided at that level and since the scrip has bounced off 200-DMA several times in the past, the support became significant. After a brief period of consolidation, the stock started to move up and last week it crossed over the resistance at ₹550. Thus, it looks set to rally from here and could even make fresh highs. Given these factors, one can consider buying this stock with a stop-loss at ₹545. The stock has the potential to rally past the prior high and hit ₹600, which can be the target.

Published on June 12, 2021

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