ABB India (₹2589.1)
Sees fresh breakout
The stock of ABB Ltd, which saw a significant rally in 2021, has been as largely trading in a sideways trend in 2022. That is, it was broadly largely trading within ₹1,950 and ₹2,400. Last week, the scrip gathered enough strength to break out of the resistance at ₹2,400 and now, the price action hints at further upside.
We expect the stock to appreciate to ₹3,000 by the end of this year. But note that it could retest the resistance-turned-support of ₹2,400 before surging from the current level. Hence, traders can buy the stock now and accumulate if price drops to ₹2,400. Thus, the average buy price will be approximately ₹2,495. Keep initial stop-loss at ₹2,250. When the price increases above ₹2,800 revise the stop-loss upwards to ₹2,600. Liquidate your holdings when the scrip touches ₹2,990.
Hindustan Unilever (₹2,496.85)Set to rally
The stock of Hindustan Unilever, which depreciated between September 2021 and March this year, saw its price drop from ₹2,820 to ₹1,930. It then started to recover. Last week, it rose above a barrier at ₹2,400 — a bullish sign. We expect the stock to rally back to ₹2,820 levels before the end of this year. Nevertheless, the price level of ₹2,500 is a minor hurdle and hence, there might be a dip.
We forecast the stock to soften to ₹2,400 and then begin the rally, eventually appreciating to ₹2,820. Given the above conditions, one can initiate fresh longs on the stock at the current level of ₹2,497 and accumulate more longs when price dips to ₹2,400. Place stop-loss at ₹2,275. Modify the stop-loss to ₹2,500 when the stock moves above ₹2,650. Exit the longs at ₹2,820.
Siemens (₹2,681.35)At record high
The stock of Siemens was on a rally between June 2020 and October 2021. But then the stock lost momentum and started to trace a horizontal trend. It was oscillating between ₹2,100 and ₹2,520 until last week. The stock went up through the past week and breached the hurdle at ₹2,515, opening the door for further upside. That said, as with any breakout, the likelihood of the stock testing ₹2,520 is high before a further rise is seen.
So, participants can plan their entries in two legs. That is, go long at the current level of ₹2,681 and add more longs when price moderate to ₹2,520 so that the average price is around ₹2,600. Place initial stop-loss at ₹2,415 and tighten it to ₹2,650 when the stock crosses over ₹2,800, an important level. Liquidate all the longs when the price hits ₹2,990.