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SBI Cards and Payment Services (₹798.2)
Set to decline further
The stock of SBI Cards and Payment Services has been on a decline since mid-June after it faced a strong barrier at ₹930. While it has been forming lower lows and lower highs since then, the stock made a fresh four-month low of ₹795.4 last week. The price action shows that the bears are in the driving seat and are likely to pull the stock price further down.
Although ₹765 is a minor support, given the current momentum, the price could fall to ₹715. So, traders can go short on SBI Cards at the current level of ₹798 and add shorts if the price rises to ₹830. Place stop-loss at ₹860 initially. Revise the stop-loss downward to ₹790 when the stock touches ₹765. Exit the short positions at ₹715.
Tech Mahindra (₹1,305)
Uptrend steady
Tech Mahindra’s share price has been appreciating gradually since May when it found support at ₹925. In July, it broke out of a resistance at ₹1,130, it continued to advance and rallied past another hurdle at ₹1,250 two weeks ago. Thus, the bulls, although slow, are gaining ground and are likely to push the stock price further up.
There is a potential for the stock to hit ₹1,450 in the short term. But there could be a correction to ₹1,250 before the stock cracks ₹1,400-mark. Considering the above, traders can buy Tech Mahindra shares now at ₹1,305 and accumulate if the price softens to ₹1,255. Keep initial stop-loss at ₹1,225. When the stock surpasses ₹1,400, trail the stop-loss to ₹1,365. Book profits at ₹1,450.
Zydus Lifesciences (₹595.6)
Short-term correction possible
Zydus Lifesciences’ share price tumbled nearly 8 per cent last week. It marked a nine-week low of ₹594.3 on Friday before closing the session at ₹595.6. Although the overall trend remains bullish, the price action over the past few weeks suggest a potential corrective decline to ₹560 in the near term. Nevertheless, the stock could retrace to the support-turned-resistance level of ₹615 before falling further.
Hence, participants can go short on the stock of Zydus Lifesciences at the current level of around ₹595; add more shorts if the price inches up to ₹615. Stop-loss can be placed at ₹630 initially and move it down to ₹595 when the price falls to ₹575. Liquidate the shorts at ₹560.
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