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Axis Bank (₹900.4)
Breaches multi-year resistance
Bulls emerged victorious as the stock of Axis Bank broke out of a multi-year resistance of ₹800 last week. The volumes have been rising over the past week, indicating that the breakout is less likely to be a false one. Although there is more upside left, we expect the stock to face a corrective dip that can drag the price to the resistance-turned-support of ₹800.
Thereafter, we expect the stock to resume the next leg of trend and could ease past the psychological ₹1,000-mark and hit ₹1,100 in a couple of quarters. Based on our expectations, we recommend going long at the current level of ₹900 and accumulate if there is a dip to ₹800. Stop-loss can be at ₹720 at first. Move it up to ₹950 when the stock crosses above ₹1,000. Book profits at ₹1,100.
Deepak Fertilizers (₹1,031.05)
Bull-flag breakout
The stock of Deepak Fertilizers and Petrochemicals Corporation has been forming lower highs and lower lows for nearly two months. However, there was never any bearish reversal pattern or breach of any key support levels. On the back of this, the stock saw a swift high-volume rally last week, forming a fresh high and opening the door for further appreciation. The latest up move has confirmed a bull-flag pattern, indicating another sharp rally from here.
The stock could possibly rise to ₹1,150. But then, there could be a minor decline to ₹975, which can be considered an opportunity to add more shares to your holdings. Therefore, buy now at ₹1,031 and add more on a dip to ₹975. Place stop-loss at ₹935. When the stock moves above ₹1,080, tighten the stop-loss to ₹1,025. Liquidate all the longs at ₹1,150.
GSPL (₹217.9)
At a solid support
The stock of Gujarat State Petronet Ltd (GSPL) has been on a downtrend since August 2021. However, it can be considered for a counter-trend trade, though it is risky. Because the price band of ₹210-220 is a strong support where a long-term rising trendline support coincides. Also, the daily RSI and the MACD are showing signs of bullish divergence.
Additionally, the stock formed a hammer candlestick pattern a couple of weeks ago, which stays valid. Therefore, there is a good chance for a rally to ₹240. The risk-reward also favour longs. So, buy now at around ₹218 and on a decline to ₹210 with initial stop-loss at ₹204. When the stock appreciates above ₹228, revise the stop-loss up to ₹222. When the stock touches ₹235 alter the stop-loss to ₹230. Book profits at ₹240.
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