ICICI Prudential Life (₹522.6)

Confirms double-top pattern

The stock of ICICI Prudential Life Insurance Company failed to breach the barrier at ₹600 for the second time, a month ago. Post this failed attempt, it depreciated. By closing below ₹535 last week, the scrip confirmed a double-top chart pattern. This indicates a change in trend to bearish and the price could decline to ₹475 in the short term.

Nevertheless, before falling below the ₹500-mark, we expect the stock to see a minor rally to ₹550 and then resume the fall. Hence, we recommend initiating fresh short positions now at ₹522 and short again if the price rises to ₹545. Keep initial stop-loss at ₹560 and modify it to ₹525, when the stock dips below ₹500. Tighten the stop-loss further to ₹500 when the price touches ₹485. Exit at ₹475.

Siemens (₹3,593.5)

At a range bottom

Siemens’ stock has been rallying steadily since August 2020. It began the upswing by forming a base at ₹1,000. However, since May this year, the stock has not been trending. It is oscillating between ₹3,500 and ₹3,950. Over the past month, the price dropped and now, the stock is trading near the range bottom. Since the overall trend remains bullish and a rising trendline support is present near the current level, the probability of a rally from here is high.

We anticipate the stock to appreciate towards the range top at ₹3,950 in the short term. So, go long now at ₹3,594 and buy more shares if the price dips to ₹3,510. Place initial stop-loss at ₹3,400. When the stock surpasses ₹3,750, alter the stop-loss to ₹3,600. Liquidate at ₹3,850.

Sobha (₹762.4)

Signs of further rally

Sobha’s stock, which has been in an uptrend since March after finding support at ₹425, broke out of a resistance at ₹720 last week. There was some consolidation before this breakout. Thus, the bulls seem to have regained traction and are likely to lift the stock further up. Yet, we expect Sobha’s stock to moderate from the current level and retest resistance-turned-support level of ₹720.

So, we suggest buying the shares of Sobha at the current level of ₹762 and accumulate when the price softens to ₹720. Keep stop-loss at ₹680 initially and revise it up to ₹810 when the stock touches ₹850. Move the stop-loss further up to ₹845 when the price rises to ₹875. Book profits at ₹900.