GSPL (₹278.8)
Bullish trend reversal
The stock Gujarat State Petronet Ltd (GSPL) bounced off a strong support at ₹215 a month ago. The upward momentum strengthened last week leading to the breach of the barrier at ₹260, where the 50-week moving average coincided. This break has confirmed a double pattern and this hints at further rally from here. Nevertheless, the stock might witness a price correction to ₹260 from the current level before crossing over minor resistance at ₹290.
Considering the above factors, one can buy the stock now at around ₹279. Accumulate more shares, in case the price dips to ₹260. Keep initial stop-loss at ₹245. When the scrip appreciates above ₹290, revise the stop-loss to ₹270. Move the stop-loss to ₹285, when the stock surpasses ₹310. Book profits at ₹325.
NCC (₹81.1)
Inverse head & shoulder
The stock of NCC, which has been trading in the sideways trend between ₹70 and ₹75 since the beginning of September, broke out of the range a fortnight ago. The 50-per cent Fibonacci retracement coincided at ₹75 and thus, the breakout is significant. The rally over the past two weeks has confirmed the inverse head and shoulder pattern, indicating a bullish trend reversal.
Going ahead, we expect the stock to retain the momentum and appreciate towards the resistance band of ₹96-100. Therefore, we recommend buying the stock at the current level of ₹81. Add more longs when price moderates to ₹75. Place stop-loss at ₹68. When the stock moves above ₹86, move the stop-loss at ₹80. Exit all the longs at ₹96, as the likelihood of a fall after touching the price of ₹96-100 is high.
Persistent Systems (₹3,970.8)
Confirms double bottom
The stock of Persistent Systems saw a decline between April and September this year, where the price dropped from about ₹5,000 to ₹3,100. But the recent rally possessed good strength and led to the breakout of a resistance at ₹3,800 last week. This has confirmed a double-bottom pattern on the weekly chart, indicating a potential bullish trend reversal. So, we expect the stock to continue the uptrend and retest ₹5,000 in two-three months.
We suggest initiating fresh long positions now at around ₹3,970 and add more longs, if the price dips to ₹3,815. Place initial stop-loss at ₹3,560. When the stock appreciates and crosses over ₹4,400, modify the stop-loss to ₹4,150. Tighten the stop-loss to ₹4,550, when the price goes above ₹4,750. Liquidate all the longs ₹4,885.
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