Navin Fluorine (₹4,383.35)
Breaks out of range
The stock of Navin Fluorine International was tracing a sideways trend for the past one year. That is, it has largely been oscillating within the range of ₹3,300-4,230. Last week, it broke out of the range with significant volume, opening the door for further appreciation. Although the scrip could see a corrective decline to ₹4,130 from the current level, it will eventually start rallying.
But note that at ₹5,000, there could be a pause or even a minor decline to ₹4,800. Yet, we expect that the stock will rally to ₹5,200 eventually over time. Therefore, one can buy at the current level and accumulate if price moderates to ₹4,130. So, the average price would be at ₹4,256. Place initial stop-loss at ₹3,800. Once the price is above ₹5,000, tighten stop-loss to ₹4,700. Exit when price touches ₹5,200.
Schaeffler India (₹2,780.5)
The stock of Schaeffler India is on an uptrend since June 2020. The stock is showing no signs of slowing down as it eased above another potential resistance at ₹2,500 last week. This also resulted in the stock breaking out of a wedge pattern in the daily chart. So, the scrip will, most likely, rally further and could cross over the ₹3,000-mark. Potential hurdles are at ₹3,080 and ₹3,225.
But there is a chance that Schaeffler India’s stock could see a correction to ₹2,630 before moving past ₹3,000. Hence, one can go long in the stock now and add more longs if there is a dip to ₹2,630. The average price would be ₹2,705. Stop-loss can be at ₹2,450. On a rally to ₹3,080, exit half of the longs and alter stop-loss to ₹2,850. Liquidate the remaining at ₹3,225.