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)

Wedge breakout

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.

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