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Allcargo Logistics (₹453.6)
Confirms ascending triangle
The stock of Allcargo logistics, which rallied in the second half of last week, breached a resistance at ₹440. This has confirmed an ascending triangle — a bullish continuous pattern on the charts. Thus, we can expect the stock to produce more gains from here. According to the pattern, the price could move up to ₹515. But before that, it is likely to see a dip to test the price band of ₹420-440.
So, traders can split the intended amount and buy at three price levels. Buy for one-third now at ₹453. Buy another one-third when price dips to ₹440 and the remaining on a fall to ₹420. Thus, average buy price will be around ₹437. Place the stop-loss at ₹395 initially. Shift it up to ₹450 on a rally above ₹480. Tighten the stop-loss further up to ₹475 when the price touches ₹500. Exit at ₹515.
HDFC (₹2,651.7)
Surpasses a key resistance
The stock of Housing Development Finance Corporation (HDFC), which has been rallying since early October, possessed enough momentum to break out of the hurdle at ₹2,480 last week. Thus, the scrip has formed higher high and higher low on the daily chart, indicating good strength.
Going ahead, the stock can see its price moderate to ₹2,520 and then resume the uptrend, which can lift it to ₹3,000. We recommend traders to go long on the stock at the current level of ₹2,651 and add more when price softens to ₹2,520. Place initial stop-loss at ₹2,375. Revise the stop-loss upwards to ₹2,670 when price goes above ₹2,800. On a rally to ₹2,900, exit one-third of the longs you hold and then tighten the stop-loss to ₹2,825 for the rest. Liquidate the remaining longs at ₹3,000.
Indian Overseas Bank (₹20.65)
Inverse Head & Shoulder
After rallying in the first week of November, the stock of Indian Overseas Bank (IOB) saw a decline last week. However, the dip is more likely to be a corrective one. While this down move can extend to ₹19.65, the stock is expected to bounce off this level and see a fresh leg of uptrend. Note that ₹19.65 is the neckline of a confirmed inverse Head & Shoulder pattern.
Therefore, we advise traders to buy the stock of IOB at the current level of ₹20.65 and accumulate more if there is a fall in price to ₹19.25. The average price will thus be nearly ₹20. Keep stop-loss at ₹16.50 at first and move it up to ₹22 when the stock rallies past ₹24. Tighten the stop-loss further to ₹24 when price goes above ₹26. Book profits at ₹28.
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