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City Union Bank (₹155.9)
Breaks out of range
City Union Bank’s stock was fluctuating in a band since mid-February. The boundaries of the range are ₹120 and ₹145. Last month, the scrip broke out of the resistance at ₹145, turning the outlook positive. Going ahead, the stock is likely to see a dip in price from the current level of about ₹156 to ₹145, and then see a rally. This uptrend is likely to take the stock to ₹190.
Hence, one can buy shares of City Union Bank now at ₹156. Add more longs when the price drops to ₹150 and ₹145. Thus, the average buy price would be around ₹150. Keep stop-loss at ₹130 initially. When the price touches ₹170, modify the stop-loss to ₹158. Further tighten the stop-loss to ₹170 when the stock hits ₹180. Exit at ₹190.
Nazara Technologies (₹812.7)
Right on a support
Nazara Technologies’ stock has largely been tracing a sideways trend since September. Prior to that, it saw a steady rally that began in April on the back of the support at ₹500. Currently at around ₹813, the scrip is now hovering above the 20-week moving average which is now at ₹790. A rising trendline also coincides with this level, making it a strong support.
We expect Nazara Technologies to see a fresh leg of uptrend from the current level. This can lift the stock to ₹1,250. Go long at the current level of about ₹813. Place stop-loss at ₹680 initially. When the price crosses over ₹1,000, revise the stop-loss to ₹850. Tighten the stop-loss further to ₹980 when the stock moves to ₹1,100. Book profits at ₹1,250.
Timken India (₹3,200.9)
Bulls back in the game
Timken India’s stock, which was consolidating for five weeks, broke out of the range last week. It breached a resistance at ₹3,000 early last week and rallied through the week. The breakout has brought back the bulls into the game. The chart indicates a potential for the stock to appreciate to ₹3,700. But there could be some price dip from the current level.
So, we suggest buying this stock at three price points. That is, buy now and on a dip to ₹3,115 and ₹3,000. Place stop-loss at ₹2,820. When the price rises to ₹3,400, alter the stop-loss to ₹3,270. When the share price hits ₹3,600, liquidate half of the longs you hold. Post this, raise the stop-loss to ₹3,450 for the remaining positions. Exit the leftovers at ₹3,700.
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