Range breaks out

The stock of Gujarat Ambuja Exports was oscillating in the ₹225-265 range since October last year.

However, it broke out of this range a couple of weeks ago, hinting at a bullish reversal. Since the scrip is able to sustain above ₹265 and the price action shows a positive reversal in trend, the likelihood of a rally is high.

But we will most likely see a corrective dip to ₹265 before the next up move.

So, traders can go long now at ₹292. Add more shares if the price dips to ₹265. Keep stop-loss at ₹240 initially. Shift it up to ₹300 when the stock surpasses ₹325.

On a rally to ₹355, liquidate one-third of the longs that you hold. Thereafter, tighten the stop-loss to ₹340. Exit the remaining two-third of your position at ₹370.

MRPL (₹64.2)

Strong bullish momentum

Mangalore Refinery and Petrochemicals’ (MRPL’s) share saw a sharp rise over the past week, backed by considerable volume.

Consequently, it invalidated the barrier at ₹62. The stock is now well placed to extend the rally. While there is a resistance at ₹80, we anticipate the price to cross over this level. MRPL has the potential to rise towards ₹100 over the medium term.

Therefore, participants can consider buying this stock at the current level of ₹64.2. Buy more shares if the price softens to ₹58. Place stop-loss at ₹42 initially.

When the stock goes above the hurdle at ₹80, tighten the stop-loss to ₹72. Further, when the price appreciates to ₹90, exit half of your positions. Then modify the stop-loss to ₹85. Liquidate the remaining longs at ₹95.

OFSS (₹3,563.9)

Trend turns bullish

Oracle Financial Services Software (OFSS) stock has formed a base at around ₹2,900 in September last year.

This base has helped the stock to reverse the trend to bullish, as the bounce against this level has taken it above a trend-defining resistance at ₹3,400. Even though there appears to be a chance for the stock to retest the level of ₹3,400, we expect the stock to eventually appreciate towards ₹4,120.

This move is likely to happen over the next four-six months. Buy the stock now at ₹3,563 and on a dip to ₹3,460. Place stop-loss at ₹3,200. Shift it to ₹3,680 when the price rises above ₹3,800. At ₹4,000, exit half of the longs you hold. Then alter the stop-loss to ₹3,900 for the rest. Book remaining positions at ₹4,120.