HCL Technologies (₹1,030)

Bounces off a base

The stock of HCL Technologies depreciated between January and September this year. The price dropped from about ₹1,340 to ₹890, losing nearly 34 per cent. However, ₹890 is a good support and capitalising on this, the bulls were able to lift the price. The stock confirmed a double bottom pattern two weeks ago. The price action indicates that the medium-term trend has turned bullish. We expect the stock to rise and retest ₹1,340, probably before the end of next year.

So, buy HCL Technologies now and on a dip to ₹985. Place stop-loss at ₹935 initially. Modify it to ₹1,040 when the price goes above ₹1,100. Tighten the stop-loss further to ₹1,140 when the stock gets past ₹1,200. At ₹1,300, book one-third of the longs and alter stop-loss to ₹1,240 for the rest. Exit the remaining at ₹1,340.

Jindal Steel & Power (₹453.9)

Breaches a hurdle

The stock of Jindal Steel & Power has been appreciating since early July. But since mid-September, it has been facing a barrier at ₹455. On Thursday, the scrip broke out of that level and although there was a price decline on Friday, it is likely to be a corrective one. But note that downside move might extend to ₹430. Overall, we expect the stock to rally either from the current level of ₹454 itself or after a decline to ₹430. That rally can lift it up to ₹570 over the medium term.

So, one can buy now and add more shares on a dip to ₹430. Place an initial stop-loss at ₹415. When the stock rallies past ₹500, alter the stop-loss to ₹470. Shift it further up to ₹500 when price touches ₹535. Liquidate all the longs at ₹570 since the price region of ₹570-580 is a resistance band.

Laurus Labs (₹444.65)

On a crucial support

Since the past two months, the stock of Laurus Labs is on a decline. It dropped from about ₹600 in mid-August to ₹444.65 last Friday. But further decline from here may not happen because the price level of ₹440 is a strong support. In the last one year, the stock has bounced off from this support at ₹440 thrice. We forecast a similar bounce in the coming week and the stock could appreciate to ₹535 in the next two or three months.

We suggest buying this stock at the current level with stop-loss at ₹395 at first. When the stock crosses over ₹500, revise the stop-loss up to ₹460. Book profits at ₹535, because, at ₹535, it might meet the falling trendline resistance. While the breach of this trendline can result in the rally intensifying, it is better to exit at ₹535 and then rebuy after the trendline is invalidated.

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