Testing a support
The stock of Adani Enterprises has fallen for three weeks in a row. However, it has now reached a support band of ₹3,000-3,170. The 50-day moving average is at ₹3,200. Therefore, it is less likely for the stock to extend the fall from here. We expect the stock to bounce shortly on the back of the support. The scrip will most probably rally to ₹3,800. But there is a chance that the price will drop a bit, possibly to ₹3,110, before rallying.
Given these conditions, we suggest going long at the current level of ₹3,277 and accumulate if the price dips to ₹3,110. Place stop-loss at ₹2,980 initially and shift it up to ₹3,350 when the stock moves above ₹3,500. Tighten it further to ₹3,500 when price touches ₹3,650. Exit your positions at ₹3,800.
Delta Corp (₹227.35)
Seasonal rally expected
Since early July, the stock of Delta Corp has been appreciating. Over the last month, there has been good buying. The price action indicates there could be another leg of a good rally going ahead. Interestingly, this stock has gained in October-December period of the last five years, exhibiting a seasonal pattern. We expect the stock to repeat that this year too. It can ease past the barrier at ₹250 and touch ₹300 by the end of this year.
While we expect the stock to set off for a rally from here itself, there is a slight chance for a corrective decline to ₹205. So, buy the stock now and go long if there is a dip in price to ₹205. Keep the stop-loss at ₹190 first and then tighten it to ₹230 when price goes above ₹250. Move the stop-loss further up to ₹250 when stock touches ₹275. Book profits at ₹300.
Zydus Lifesciences (₹422)
Turns around for the good
The stock of Zydus Lifesciences seems to be shifting its long-term trend up. It has been forming higher highs and higher lows since May. With the breakout of ₹400 last week, the outlook has become positive. But the scrip could test ₹400 before rallying past ₹450. Potential is good for the stock, wherein it could appreciate to ₹600 in about a year. Notable hurdles en route to ₹600 are ₹500 and ₹560, where we suggest some risk management measures.
That is, initiate fresh longs at the current level of ₹422 and buy more if price dips to ₹400. Place stop-loss at ₹375 initially. When the stock hits ₹500, alter the stop-loss to ₹440. When the stock reaches ₹560, book profits on one-third of your total holdings and modify the stop-loss for the rest to ₹515. Liquidate the remaining longs at ₹600.