Fortis Healthcare (₹356.2)
Breaks out of a range
Fortis Healthcare’s stock broke out of a range a fortnight ago, strengthening the case for a bullish forecast. The stock was largely oscillating between ₹315 and ₹350 since July. The breakout means that the stock has confirmed a bull flag pattern, indicating a rally ahead. We expect the stock to appreciate towards ₹400 in the near-term.
That said, we might see its price moderate to ₹345 from the current level before rallying. So, we recommend going long on the stock of Fortis Healthcare at the current level of ₹356 and add more shares if the price dips to ₹345. Place initial stop-loss at ₹325. Shift this up to ₹365 when the stock moves above ₹380. Book profits at ₹395.
Gujarat Fluorochemicals (₹2,813.2)
Risk-reward favours long
Gujarat Fluorochemicals’ stock has lost about 20 per cent over the past year. But the price action since early 2023 shows that the stock has found strong support between ₹2,550 and ₹2,600. This has been preventing further fall in price. Last week, the stock bounced off this price band, a positive sign. Also, since the stock is now hovering around this region, the risk-reward ratio is favourable for longs.
So, traders can buy Gujarat Fluorochemicals now at ₹2,813. Accumulate if the price dips to ₹2,650. Keep stop-loss at ₹2,485. Revise this up to ₹2,750 when the price touches ₹2,900. Tighten the stop-loss further to ₹2,880 when the stock reaches ₹3,000. Exit at ₹3,120.
Jubilant FoodWorks (₹528.2)
Bounces off a support
Jubilant FoodWorks’ stock rebounded from the support at ₹500 last week. Thus, it continues to chart higher lows, which has been the case since April. Given the prevailing price action, we expect the stock to break out of ₹550 soon and appreciate to ₹630. Hence, we suggest buying the stock of Jubilant FoodWorks now at ₹528.
Add more shares if the price softens to ₹515. Place stop-loss at ₹485 initially. Trail this to ₹520 when the stock surpasses ₹550. Move the stop-loss further up to ₹550 when the price hits ₹580. On a rally to ₹600, liquidate half of the longs that you hold. Thereafter, for the remaining position, tighten the stop-loss to ₹575 and retain it. Exit the leftover at ₹630.