Comments
BHEL (₹71.9)
Bears regain momentum
The stock of Bharat Heavy Electricals Ltd (BHEL) has been on a decline since December last year. It started to fall after facing the resistance at ₹92. The latest leg of decline began in early March from about ₹80. The daily chart shows that the stock has been forming lower lows and lower highs, and there are signs that the downswing could extend.
Although there is a minor support at ₹66, we expect the price to drop to ₹58 in two-three months. Therefore, traders can consider going short on BHEL at the current level of ₹72. Add more shorts when the price rises to ₹76. Place stop-loss at ₹80 at first and move it to ₹71 when price falls below ₹66. Further, when there is a drop to ₹62, tighten the stop-loss to ₹66. Book profits at ₹58.
Godrej Properties (₹1,044.6)
Makes fresh 52-week low
After breaking below the support at ₹1,150 in mid-February, the stock of Godrej Properties attempted to regain strength and move northwards. However, the support-turned-resistance of ₹1,150 blocked the bulls and resulted in another fall off this level. Currently, the stock is trading at ₹1,044. From here, we anticipate further depreciation where the stock is likely to touch ₹850 over the medium term.
Given the bearish inclination and that the stock is below a key level, one can consider shorting the stock of Godrej Properties. That is, sell the stock at the current level of ₹1,044. Add more shorts in case the price inches up to ₹1,150. Place stop-loss at ₹1,215. When the stock falls below ₹950, revise the stop-loss to ₹1,015. Book profits at ₹850.
Max Financial Services (₹619.5)
Slips below a support
The trend has been bearish for the stock of Max Financial Services Ltd since August 2021. A couple of weeks ago, it broke below the support at ₹700 and last week it breached another support at ₹670. The selling momentum appears strong and the probability of further fall from the current level is high.
Since there has been a sharp fall of late, there might be a corrective rally, possibly to ₹670 before the stocks see the next leg of trend. So, we recommend going short at the current level of ₹619 and also when there is a price rise to ₹670. Place stop-loss at ₹710 initially. When the price slips below ₹575, bring the stop-loss down to ₹615. Once the stock touches ₹525, tighten the stop-loss further to ₹560. Exit the shorts at ₹500.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.