Havells India (₹1,285)
Breaks a key resistance
The stock of Havells India was largely consolidating between ₹1,160 and ₹1,235 since the beginning of this year. Last week, it broke out of this range. It has also closed above another resistance at ₹1,250. This has changed the short-term outlook positive. Although there might be a correction to ₹1,250, it is expected to continue the upward journey until ₹1,400.
As the probability of a rally looks high, traders can go long in this stock at the current level of ₹1,285. Add more longs if the price drops to ₹1,260. Place stop-loss at ₹1,220. Revise this up to ₹1,290 when price moves above ₹1,335. Tighten the stop-loss further to ₹1,330 if the stock touches ₹1,360. Exit the longs at ₹1,390.
At a supply zone
The stock of Power Finance Corporation (PFC) has been in an uptrend since October last year after taking support at ₹100. But currently trading at around ₹169, it has reached a critical resistance. The price band of ₹165-175 has been acting as a considerable supply zone. Notably, this has been holding well since 2014. Thus, we expect the stock to witness a correction from the current level.
The price can possibly drop to ₹150 in the short term. The risk-reward ratio too is favourable for the bears. So, traders can short PFC now at near ₹169. Add more shorts if the price inches up to ₹174. Keep initial stop-loss at ₹182. When the stock slips below ₹156, move the stop-loss down to ₹161. Book profits at ₹150.
UCO Bank (₹28.5)
Likely to resume rally
The stock of UCO Bank has been rallying for the past one month. It broke out of the resistance band of ₹27-28 a fortnight ago. But then, the price dropped last week. That said, the overall trend is bullish, and the recent decline is more likely to be a corrective one. The trend will tilt to downside only if the support at ₹27 is invalidated.
Going forward, we expect the stock to resume the rally and move up towards ₹33 in the short term. Considering these factors, we suggest buying this stock now at around ₹28.5. Buy more if price dips to ₹27. Place initial stop-loss at ₹26. When the stock goes past ₹31, tighten the stop-loss to ₹29. Liquidate the longs at ₹33 as this is a resistance against which the stock could see a decline.