eClerx Services (₹1,290.7)
Hovering around support
The stock of eClerx Services has been moving in a horizontal trend since May 2022. It has been oscillating within the key levels of ₹1,250 and ₹1,530. Even though the stock has seen a fall over the past three weeks, it remains within this range. Currently trading at around ₹1,290, it is nearing the range bottom. This increases the probability of a rally from here.
Since the risk-reward ratio favours long positions and that the scrip is near a support, we suggest going long now at ₹1,290. Add more longs if price dips further to ₹1,260. Place stop-loss at ₹1,175. If the stock rebounds and moves above ₹1,400, shift the stop-loss up to ₹1,300. Liquidate the longs when the stock touches ₹1,500 as the stock could fall off the range top.
Godrej Consumer Products (₹968.4)
Moves above a hurdle
The stock of Godrej Consumer Products has been appreciating since April last year. However, since September, it was struggling to breach the hurdle at ₹950. But last week, it managed to cross over the ₹950 resistance, and this increases the likelihood of further upside in the coming weeks. We anticipate one more upswing from the current level, which can lift the stock to ₹1,065. The RSI and the MACD on the daily chart show good positive momentum.
Based on the above factors, we recommend buying Godrej Consumer Products now at ₹968. Place initial stop-loss at ₹925. Shift this up to ₹980 when the price rises above ₹1,020. Further, alter the stop-loss to ₹1,010 when the stock touches ₹1,040. Book profits at ₹1,065 as we might see a corrective decline from this level.
UltraTech Cement (₹7,620)
Breaks out of a barrier
The stock of UltraTech Cement bounced off the 200-day moving average at ₹5,160 in June last year. However, after reaching the ₹7,300-7,360 band in December, it lost traction. Although it did not see a fall, the stock was largely charting a sideways trend. Nevertheless, the barrier at ₹7,360 was invalidated last week. Thus, the probability of a rally from here is high.
We expect the stock to touch ₹8,100 in the short term. But before the rally, we might see a minor dip to ₹7,360. Considering these factors, one can initiate fresh longs now at ₹7,620 and add more longs if price dips to ₹7,360. Place stop-loss at ₹7,160 at first. Alter the stop-loss to ₹7,500 when price touches ₹7,800. Tighten the stop-loss further to ₹7,750 when the scrip appreciates to ₹8,000. Exit at ₹8,100.