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Divi’s Laboratories (₹4,012.3)
Inverted head and shoulder
Divi’s Laboratories’ stock has been on a rise over the past couple of weeks. Last week, it marked a fresh 52-week high of ₹4,072.35 before moderating to ₹4,012.30. With this, the stock has confirmed an inverted head and shoulder – a bullish reversal pattern – on the weekly chart. As per this chart set-up, the share price is likely to rise to ₹5,000.
But there could be a price correction from here, possibly retesting ₹3,830, before the next leg of rally. So, buy now at around ₹4,012 and accumulate on a dip to ₹3,830. Initial stop-loss can be at ₹3,500. When the stock touches ₹4,600, raise the stop-loss to ₹4,400. On a rally to ₹4,900, exit half of the longs. For the other half, tighten the stop-loss to ₹4,780. Exit them at ₹4,980.
IEX (₹164.1)
Signals bullish reversal
IEX’s (India Energy Exchange) stock started its latest leg of rally in November last year. It began rising after finding support at ₹125. A fortnight ago, the stock surpassed a crucial barrier at ₹160. Post this, the weekly chart indicates that the trend is reversing for the upside. Although there was a price dip last week, it is likely to be only a correction.
We anticipate the stock to start rallying from here or after extending the dip to ₹155. It shows a potential to touch ₹200. So, consider buying at the current level of ₹164 and add longs in case the price drops to ₹155. Keep initial stop-loss at ₹140. When the stock rallies past ₹180, tighten the stop-loss to ₹168. Tighten the stop-loss further to ₹180 when the price hits ₹190. Exit at ₹200.
Tilaknagar Industries (₹251.7)
Set to resume rally
Tilaknagar Industries’ stock is on a long-term uptrend. But in November last year, after marking a high of ₹291, it has seen a moderation in price. Nevertheless, the price band of ₹235-245 acted as a good base and prevented decline beyond these levels. So, the uptrend remains intact. In the second half of last week, the stock saw an uptick and the price action now shows signs of a resumption in the rally.
We expect the stock to touch ₹280 in the near term. So, one can buy shares of Tilaknagar Industries now at around ₹252 and accumulate if the price dips to ₹245. Place initial stop-loss at ₹232. When the stock reaches ₹270, move the stop-loss up to ₹258. Liquidate the longs at ₹280.
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