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Confirms Head and Shoulder pattern
The Info Edge (India) share price shot up last week. It hit a five-month high of ₹4,250 on Friday, before closing the week a little lower at ₹4,198.7. A close above ₹4,000 means the stock has confirmed a head and shoulder pattern, hinting at further rally in the coming weeks.
The charts indicate a potential rally to ₹4,850. So, we recommend going long on the stock of Info Edge at the current level of ₹4,198. Add more longs when the price dips to ₹4,020. Keep a stop-loss at ₹3,720 initially. When the stock surpasses ₹4,510, modify the stop-loss to ₹4,300. Move the stop-loss further up to ₹4,500 when the price goes above ₹4,700. Liquidate the longs at ₹4,850.
Signs of bullish reversal
The stock of Just Dial, which broke out of a critical resistance at ₹660 a month ago, has been able to sustain above it. Thus, the inclination is clearly bullish. A couple of weeks ago, it crossed over a falling trendline resistance. Also, the RSI and the MACD on the weekly chart shows good upward momentum. Hence, there is a potential for the stock to appreciate to ₹800 in the short term.
Traders can buy now at around ₹705 and accumulate if the price moderates to ₹680. When Just Dial’s share price moves above ₹750, revise the stop-loss to ₹720. Tighten the stop-loss further by shifting it up to ₹755 when the stock rallies past ₹780. Book profits at ₹800.
Set to bounce
Sundram Fasteners’ share price has been stuck in a range for the past three weeks — it has largely been oscillating between ₹1,050 and ₹1,090. However, the overall trend is bullish and the scrip is now trading near the 20-day moving average support. Therefore, we anticipate the stock to rebound from the current level.
This upmove is expected to result in the breakout of the range, which can lift the price to ₹1,190 in two-three weeks. We suggest traders buy Sundram Fasteners’ share at the current level of ₹1,068. Place stop-loss at ₹1,025 initially. When the stock moves above ₹1,120, alter the stop-loss to ₹1,080. Further, tighten the stop-loss to ₹1,140 when the stock touches ₹1,170. Book profits at ₹1,190.
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