Movers & Shakers: Stocks that will see action this week

Bulls in driver’s seat

The uptrend in the stock of Tata Consumer Products looks strong and before a couple of weeks, it broke out of the resistance band of ₹680 and ₹700. While the stock seemed to enter a corrective phase in early May, the bulls regained control quickly and turned the trend upside. The major trend being bullish, the stock returned to upward trajectory with ease. The rally continued and the scrip marked a fresh all-time high of ₹747.4 on Friday before closing a bit lower. Nevertheless, the trend is bullish, and the stock is likely to post further gains. Besides, indicators like the RSI and the MACD on the daily chart show bullishness. Considering the above factors, traders can initiate fresh long positions with a stop-loss at ₹715 and look for a target of ₹790.

Hits fresh lifetime high

The stock of Marico was trading in a sideways trend with a bearish bias since the beginning of 2021. On the back of the support at ₹380 in mid-March, the scrip started to move northwards. In early May, it broke out of a critical resistance of ₹432 with significant volume, opening the door for further strengthening. Since the breakout, the stock has been gaining steadily and it registered a fresh lifetime high of ₹524.9 on Friday. The price action on the daily chart continues to show positive momentum and the bulls are in a good position to lift the stock further upwards. Given the prevailing conditions, one can consider buying the stock. While the stop-loss can be at ₹505, the primary target can be ₹550. A breach of ₹550 can result in the stock touching ₹570.

Sees a fresh breakout

The stock of Asian Paints, which was steadily appreciating since March 2020 lows, made a U-turn in January this year from about ₹2,870 levels. It witnessed a corrective decline wherein the stock declined to mark a low of ₹2,260 during the last week of February, thereby losing about 21 per cent within a span of six weeks. However, the price band of ₹2,270 and ₹2,300 acted as a strong support on the back of which the stock re-established the rally. Consequently, it rallied past the prior high a month ago and hit a new lifetime high of ₹3,077.8 last week. Therefore, it will most likely see another leg of uptrend from here and for the same reason, traders can go long in the stock with a stop-loss at ₹2,950 for a target of ₹3,240.

Exhibits bearish signs

The stock of Mahindra & Mahindra established an uptrend in March last year from about ₹250. The uptrend was strong, and the scrip was advancing although it witnessed intermittent corrections. The stock carried over the positive momentum in 2021 as well and it went on to mark a fresh 52-week high of ₹952 in early February. But then the scrip overturned the trend as the price range of ₹920 and ₹950 was a stiff resistance. It saw considerable decline in price in the ensuing weeks and fell to ₹740 levels in April. Even though it attempted to recover in May, the stock was unable to move beyond ₹830. Last week, it closed below ₹800, turning the outlook negative. So, traders can short the stock with a stop-loss at ₹810 for a target of ₹735.

Makes lower low

The stock of Lupin, which was largely tracing a sideways trend since the beginning of 2021, broke out of the range top at ₹1,100 in the first week of March. Although the breakout looked decisive, there was no follow-up rally; instead, the scrip began consolidating in a tight range. That is, it was largely held between ₹1,175 and ₹1,250 for more than a month. But last week, the stock started to develop bearish signs and has been on a decline throughout the week. As a result, it invalidated the support at ₹1,175, thereby making a lower low. The price action on the daily chart hints at further depreciation in price and hence one can initiate fresh sell trades with stop-loss at ₹1,200. While ₹1,100 can be the primary target, the stock might decline to ₹1,060.

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