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APL Apollo Tubes (₹1,199.2)
At the end of corrective fall
The rally in the stock of APL Apollo Tubes since July last year is tracing a rising channel pattern. Although the price has seen a decline over the last three weeks, the overall uptrend remains intact. Notably, the scrip has now moved closer to the lower band of the channel, increasing the probability of a rally. The stock is likely to appreciate to ₹1,525 over the medium term.
So, one can buy shares of APL Apollo Tubes now at around ₹1,200. Add more shares to the holdings if the price dips to ₹1,130. Place stop-loss at ₹985 at first. Shift it up to ₹1,350 when the stock crosses over ₹1,400. Alter the stop-loss to ₹1,400 when the price goes above ₹1,450. Book profits at ₹1,525.
Escorts Kubota (₹1,964.6)
Testing a strong base
A couple of weeks ago, we suggested short positions on the stock of Escorts Kubota. The average short price was at ₹2,110 and the target at ₹1,940. The target was hit last week. The stock is now trading near a strong base, which has been holding well for the past six months. Therefore, the likelihood of a rally is high.
Traders can go long at the current level of ₹1,964. Add more longs if price drops to ₹1,930. Keep a stop-loss at ₹1,885 initially. When the scrip surpasses ₹2,050, alter the stop-loss to ₹1,980. Exit the longs when the price hits ₹2,130. The price band of ₹2,130-2,160 is a substantial supply zone against which the stock could start moving southwards.
LTIMindtree (₹4,640.2)
Likely to depreciate
The stock of LTIMindtree has largely been moving within the range of ₹4,275 and ₹5,000 since August last year. Nearly a month ago, the stock rallied to hit the upper band of ₹5,000 and then made a U-turn. On Friday, it marked a lower low, thereby increasing the chances of a fall from here. We expect the stock to depreciate further this week. It is likely to touch ₹4,275 in the next two weeks.
So, go short on the stock of LTIMindtree at the current level of ₹4,640.2. Add more shorts if the price goes up to ₹4,800. Place stop-loss at ₹5,000 at first. Bring it down to ₹4,575 when the stock falls below ₹4,450. Liquidate the shorts at ₹4,275 as the stock might bounce off this support level and start moving up towards ₹5,000.
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