Grasim industries (₹1,578.45)
Outlook turns bearish
The stock of Grasim Industries has been on a decline since early December last year after facing resistance at ₹1,830. As an extension of the downtrend, it slipped below the support at ₹1,650 last week. This has opened the door for further depreciation. The bears have the potential to drag the stock below the nearest support at ₹1,470 and touch ₹1,360.
But before the fall, the stock could retest the support-turned-resistance level of ₹1,650. Therefore, one can initiate fresh short positions at the current level of ₹1,578. Add more shorts on a rally to ₹1,650. Place stop-loss at ₹1,725 at first. Move it down to ₹1,550 when the stock touches ₹1,470. Book profits at ₹1,360.
IndusInd Bank (₹1,116.4)
Set to invalidate support
Since mid-December last year, the stock of IndusInd Bank has been moving within ₹1,120 and ₹1,250. For nearly three years, the resistance at ₹1,250 has been blocking the bulls indicating that the resistance is strong. Considering the sell-off witnessed last week, we expect it to sustain below at ₹1,120 this week.
Although there is a support at ₹1,000, the stock is likely to drop to ₹850, a key base. Traders can consider selling the stock now at around ₹1,116 and add more shorts in case the price rallies to ₹1,180. Place stop-loss at ₹1,275. When the stock declines to ₹1,000, revise the stop-loss to ₹1,100. Bring the stop-loss further down to ₹975 when the scrip falls to ₹900. Exit at ₹850.
National Aluminium Company (₹82.3)
Bullish signs visible
The stock of National Aluminium Company, which fell between April and June last year, entered the consolidation phase in July. Since then, it was largely oscillating within ₹68 and ₹80. But by the end of first week of this month, the stock closed above ₹80, giving it a positive bias. It has been trading above that level for the past three weeks, thereby sustaining above the ₹80-mark.
So, there can be a rally from here, which is expected to lift the stock to ₹100 where the 50 per cent Fibonacci retracement level of the prior downswing coincides. We suggest buying the stock at the current level of ₹82. Add more longs if price dips to ₹76. Place stop-loss at ₹68 initially and shift it up to ₹85 when the stock rallies to ₹92. Book profits at ₹100.
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