Apollo Hospitals (₹4,135.35)

Bearish reversal

The stock of Apollo Hospitals Enterprise has been on a downtrend since November last year from about ₹5,900. Since then, it has been forming lower lows and lower highs. It has witnessed a corrective rally in July where it appreciated from about ₹3,560 to the 50-day moving average at ₹4,500. This prevented further rally and the price dropped over the past two weeks and is currently at ₹4,135.

Going ahead, the stock is expected to depreciate more. While ₹3,650 can be a minor support, the price could decline to ₹3,120. Therefore, one can short the contract at the current level and add more shorts if the stock moves up to ₹4,430. Stop-loss can be at ₹4,700. When price falls below ₹3,560, alter stop-loss to ₹3,800. Exit the shorts at ₹3,120.

Bharat Forge (₹736)

Breaks out of range

The stock of Bharat Forge was charting a sideways range since the beginning of 2022. That is, it was oscillating between ₹615 and ₹750. But a fortnight ago, the stock broke out of the range resistance at ₹750. Even though the price has corrected last week, it is more likely to be a corrective one. Meaning the scrip could regain bullish momentum and resume uptrend from here wherein it could rally to ₹830 in the near term. The price band of ₹700-710 is expected to restrict the downside.

Considering the above factors, traders can consider going long on the stock at the current level of ₹736. Stop-loss can be placed at ₹690. When the price touches ₹800, revise the stop-loss upwards to ₹770. Exit the buys when the stock rallies to ₹830, a resistance.

Navin Fluorine (₹4,294.8)

Likely to resume rally

The stock of Navin Fluorine International, which was largely trading in the range of ₹3,800-4,200, broke out of the range three weeks ago. The trend prior to this range bound move was up. Therefore, the price action – a rally followed by a consolidation and then a breakout – indicates more on the upside. Although the price has softened over the past two weeks, the stock is able to sustain above ₹4,200.

We expect the stock to resume uptrend from here or after a dip to ₹4,025. It has the potential to appreciate to ₹5,000. So, one can buy the stock now and accumulate when it drops to ₹4,025. Place stop-loss at ₹3,800. When the stock moves above ₹4,750, tighten the stop-loss to ₹4,475. Liquidate the longs when price touches ₹5,000.

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