Comments
Bajaj Auto (₹4,760)
Breaks out of a hurdle
Bajaj Auto’s stock was charting a sideways trend over the past one month. It was largely oscillating between ₹4,550 and ₹4,720. Last week, the stock rallied and closed above the upper boundary of the range as it closed at ₹4,760. This has opened the door for further appreciation. Notably, Bajaj Auto’s stock has surpassed the 50-day moving average, increasing the odds for the price to rise from the current level.
We expect the stock to touch ₹4,950 in the short term. But before that, the price might moderate to ₹4,700 before beginning the next leg of rally. Therefore, traders can buy the stock now at ₹4,760 and accumulate when the price dips to ₹4,700. Target and stop-loss can be at ₹4,900 and ₹4,680, respectively.
Geojit Financial Services (₹56.5)
Set to extend the upswing
The stock of Geojit Financial Services has been on a rally for the past three weeks. It bounced off the support at ₹46, where both 20- and 50-week moving averages coincide, which was capitalised well by the bulls. Over the past two weeks, the stock surpassed a couple of key barriers at ₹51 and ₹54 and this has increased the probability of further upside.
Although there was a price correction last week, the uptrend remains intact and expect the stock to begin the rally soon. Hence, buy now at around ₹56.50 and add more shares to the holdings when the price softens to ₹54. Place initial stop-loss at ₹50. When the stock touches ₹65, revise the stop-loss to ₹62. Take profits at ₹70.
Goodyear India (₹1,346.3)
Set to resume rally
Goodyear India’s stock has been on an uptrend since May last year. It bounced off the support at ₹800 then and established a rally. However, towards the end of July this year, after reaching a high of ₹1,451, the price started to soften. While it closed at ₹1,346.3 last week, the uptrend has not reversed, and this price drop is only a corrective one.
Also, ₹1,340 is a good support. Hence, we expect the stock to regain traction and resume the rally. On the upside, the stock is likely to hit ₹1,500. So, traders can go long in the stock of Goodyear at the current level and place initial stop-loss at ₹1,275. When the price hits ₹1,450, tighten the stop-loss to ₹1,395. Book profits at ₹1,500.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.