Brigade Enterprises (₹560.8)
Sees range breakout
The stock of Brigade Enterprises, which was on a rally since May 2020, entered a consolidation phase in November. Since then, it had been oscillating between ₹420 and ₹530. But last week, it managed to break out of the range, which increases the likelihood of further rally from here. The stock has the potential to appreciate to ₹650 over the medium term. But before that, it could see a price moderation to ₹500. The stock could now soften to ₹500 and then resume the uptrend.
Therefore, traders can go long on the stock at the current level of ₹560 and add more longs when price drops to ₹500. Keep an initial stop-loss at ₹460. When the stock rallies past ₹600, revise the stop-loss to ₹570. Liquidate the longs when the price hits ₹650.
ICICI Bank (₹901.25)
Bullish flag breakout
The stock of ICICI Bank rallied sharply between mid-June and mid-August. During this time, the price increased from about ₹675 to ₹885. But then the bulls lost momentum. Although there was no bearish trend reversal, the stock was charting a horizontal trend — between ₹850 and ₹885. A couple of weeks earlier, the stock broke out of this range, eventually completing a bullish flag pattern.
This indicates further rally from here. The pattern indicates that the stock could appreciate to ₹1,100. But there is a possibility of the stock seeing a corrective decline to ₹875. Considering these factors, one can initiate fresh longs at the current level and accumulate when price drops to ₹875. Place initial stop-loss at ₹820 and tighten it to ₹900 when stock price goes above ₹1,000. Exit all your holdings at ₹1,100.
Pidilite Industries (₹2,844.15)
The stock of Pidilite Industries has been on a rally since mid-June. A fortnight ago, it broke out of the resistance at ₹2,750, opening the door for further appreciation. Since the overall trend is bullish and the stock has broken out of a resistance, we expect the stock to establish another leg of uptrend from here, which can take the stock to ₹3,500 within a year. But note that there could be a pause at ₹3,000.
Given the above factors, one can consider buying the stock at the current level of ₹2,844. If the price moderates to ₹2,600, add more to your holdings. Place initial stop-loss at ₹2,450. When price moves above ₹3,000, tighten the stop-loss to ₹2,850. Tighten it further to ₹3,150, if the stock rallies past ₹3,300. Liquidate all the longs at ₹3,500.