Colgate Palmolive (I) (₹1,581.8)
Could see a price spurt
Barring a temporary fall to ₹1,470 in June, the stock of Colgate Palmolive has been largely consolidating between ₹1,550 and ₹1,665 since April this year. The support at ₹1,550 is holding well as the stock has bounced back from the low of ₹1,542.6. As such, there is a good chance for seeing a rise to the range top of ₹1,665 in the next one or two weeks.
Therefore, for the short term, traders can consider buying the stock at the current level with initial stop-loss at ₹1,540. We recommend a dynamic stop-loss for this trade. That is, shift the stop-loss upward with an interval of 1.5 times the daily average true range (ATR) as and when the stock moves up. Note that this adjustment is only on the upside and not when the price falls. Book profits when the stock touches ₹1,665.
Metropolis Healthcare (₹1,295.3)
Hits fresh lows
The stock of Metropolis Healthcare has been in a downtrend since the beginning of this year. While the support at ₹1,360 was giving some breathing space for the stock since June, the bears finally breached it last week, opening the door for further fall to ₹1,080 in the next two-three months.
That said, there is a possibility for the stock to test the support-turned-resistance level of ₹1,450 from here. So, consider initiating shorts at the current level of ₹1,295 and add more shorts if there is an up move to ₹1,360. Place stop-loss at ₹1,450 initially. Bring it down to ₹1,300 when the scrip declines below ₹1,180. Tighten it further to ₹1,220 when price drops below ₹1,120. Liquidate all the shorts at ₹1,080.
Might see a correction
The stock of Punjab National Bank (PNB) has been on an uptrend since in July. After hitting a fresh 52-week high of ₹62, the price has come-off sharply. A bearish pin bar has been formed on the weekly chart. The price action shows some selling pressure between ₹58 and ₹60.
So, although the overall trend is up, we expect the stock to see a corrective decline, possibly to ₹50. Therefore, one can short the stock at the current level of ₹56.75 and add more shorts if price moves up to ₹59 so that the average short price would be around ₹58. Place stop-loss at ₹62 at first and revise it down to ₹58 when price slips below ₹54. On a fall to ₹52, tighten the stop-loss further to ₹56. Exit at ₹50.
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