Apollo Tyres (₹245.3)

Testing resistance-turned-support

The stock of Apollo Tyres has been on a rally since mid-June this year from about ₹170. A fortnight ago, it invalidated a crucial resistance, now a support, of ₹240. This also resulted in the scrip moving past a falling trendline resistance, which coincided at resistance of ₹240 at the time of the breakout. So, although the price fell last week, the inclination remains bullish.

The stock will most likely rally either from here itself or maybe after an extended fall to ₹220. The fresh leg of rally can take stock up to ₹300 before the end of this year. One can buy this stock now at around ₹245 and buy more when price softens to ₹220. Place stop-loss at ₹195. Modify the stop-loss to ₹250 when price rises above ₹270. Exit at ₹300.

Ipca Laboratories (₹909.9)

Falls off a resistance

The stock of Ipca Laboratories has been on a decline since September last year. Particularly, since the beginning of this year, the stock has been moving across a falling channel. The recent bounce, from about ₹840, took the stock to the top of the falling channel at ₹1,030. Since the 50-day moving average coincided at that level, the barrier was strong and consequently, the stock started to decline again.

Currently at ₹909, the stock will most probably see another leg of downtrend from here, probably to ₹750 over the medium-term. On the upside, the chances of a rally above ₹1,030 is less likely. So, traders can short the stock now and add more shorts when price moves up to ₹1,000. Keep a stop-loss at ₹1,050. Move this down to ₹900 when price slips below ₹840. Exit all the shorts at ₹750.

SBI Life Insurance (₹1,313.7)

Breakout sustains

The stock of SBI Life Insurance company had been blocked by the barrier at ₹1,250 since September 2021. However, towards the end of July this year, it decisively breached ₹1,250. Currently trading at ₹1,313, the stock is able to sustain above ₹1,250 indicating inherent bullishness. Therefore, it could begin the next leg of the rally anytime. On the downside, a fall below ₹1,250 is less likely.

It has the potential to rally to ₹1,500 in the near term. Therefore, one can consider initiating short-term buys at the current level of ₹1,313. Accumulate if price dips to ₹1,250. Place initial stop-loss at ₹1,225. When the stock touches ₹1,450, revise the stop-loss upwards to ₹1,390. Liquidate the longs when the price rises to ₹1,500 because there could be a correction post the stock reaching this level.

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