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.