Dynamatic Technologies (₹2,876.1)

Signs of a rally

The uptrend since August 2022 in the stock of Dynamatic Technologies turned sluggish in December. Even though it did not turn bearish, the hurdle at ₹2,800 strongly resisted the bulls at that time. But last week, the stock saw its first weekly close above ₹2,800 since October 2021.

This is expected to induce more positive momentum in the upcoming sessions and is likely to see a sharp rally. There is potential to target ₹3,400 in the coming weeks. That said, we might see a minor decline to ₹2,675 before the next leg of upswing. So, initiate longs now at ₹2,876. Add more shares if the price drops to ₹2,675. Place stop-loss at ₹2,525 at first. Tighten it to ₹2,925 when the price rises to ₹3,100. Move the stop-loss further up to ₹3,100 when stock reaches ₹3,250. Book profits at ₹3,400.

IGL (₹462.7)

Hits 52-week high

The stock of Indraprastha Gas Ltd (IGL) broke out of the firm barrier at ₹450 and hit a fresh 52-week high of ₹464 on Thursday. The charts hint that there could be more upside from here. Notably, the stock is now comfortably placed above the 50-day moving average and the breakout has occurred with higher volume. While ₹500 is the nearest resistance, we expect the stock to gain good traction as we go ahead which could lift the price to ₹570.

Therefore, go long on IGL now at around ₹463. Buy more if the price dips to ₹440. Keep stop-loss at ₹380. When the scrip touches ₹500, exit one-third of the total longs that you hold. Then revise the stop-loss to ₹470 for the rest of the holdings. Further, tighten the stop-loss to ₹530 when price hits ₹550. Exit the remaining longs at ₹570.

KPIT Technologies (₹795.9)

Testing a support

The stock of KPIT Technologies fell significantly last week. However, it can still be considered as a buy for the following reasons. One, the stock has been in an uptrend. So, from a big picture perspective, the recent fall appears comparatively minor and just like a correction. Two, it has a strong trendline support at around ₹750. Three, the price band of ₹730-770 is a considerable demand zone.

Four, last week’s fall has resulted in indicators like the RSI and MACD fall off from the overbought levels, opening more room on the upside. So, we suggest buying this stock now at around ₹795. Add more longs if the price dips to ₹775. Place stop-loss at ₹720. When the stock surpasses ₹850, tighten the stop-loss to ₹790. Liquidate the longs at ₹915.