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Alembic Pharmaceuticals (₹672.65)
Hits 52-week low
The stock of Alembic Pharmaceuticals has largely been tracing a sideways trend since August last year. But the price action had been indicating a bearish bias since it has been forming lower highs within the broad range of ₹700-820. Last week, the bears gained momentum and they dragged the stock below the support of ₹700. This has considerably increased the chances of the stock falling further. The scrip will most likely depreciate to ₹580 over the medium term.
But before that, the stock might see a corrective rally which can lift the price to ₹725. Therefore, traders can go short on Alembic Pharmaceuticals at the current level of ₹672.65 and add more shorts when price moves up to ₹725. Place stop-loss at ₹765. When price falls below ₹620, tighten the stop-loss to ₹660. Exit the shorts at ₹580.
PVR (₹2,110.85)
Registers record high
The stock of PVR has been on a rally since the beginning of this year. A couple of weeks ago, it rallied past the previous high of ₹2,086.6, opening the door for further strengthening. The volume is on a rise for the past few weeks along with the rally, indicating a strong up-move. While there is a likelihood for the stock to see a dip to ₹2,000, we expect the stock to resume the uptrend and touch ₹2,500 over the medium term.
Therefore, traders can consider initiating fresh long positions at the current level of about ₹2,111 and accumulate more when price dips to ₹2,000. Place stop-loss at ₹1,860. When the price rallies past ₹2,300, revise the stop-loss to ₹2,150. Tighten it further to ₹2,250 when price is above ₹2,400. Liquidate all your longs when the stock touches ₹2,500.
SBI Life Insurance (₹1,266.65)
Sees a fresh break out
The stock of SBI Life Insurance, which was in a sideways crawl since August last year, broke out of the range last week. That is, the scrip, which was trading within ₹1,040 and ₹1,200 saw a decisive break out of the range. Thus, we expect the stock to appreciate from the current level and rally to ₹1,450 by the end of this year. Nevertheless, as with any breakout, the stock could see a corrective dip to test the resistance-turned-support of ₹1,200 before crossing over ₹1,300.
Given the above factors, one can consider going long on the stock at the current level of ₹1,266 and add more longs when price drops to ₹1,200. Keep initial stop-loss at ₹1,150. When the stock touches ₹1,350, revise the stop-loss upwards to ₹1,280. Book all your positions when price moves up to ₹1,450.
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