Havells India (₹1,575.5)

Range breakout

The stock of Havells India, since June last year, has largely been charting a sideways trend. It was oscillating between the support at ₹1,250 and the resistance at ₹1,450. The rally that began last month gathered enough momentum to take the share price above the hurdle at ₹1,450. This move has opened the door for further rally in the coming weeks.

While there could be a corrective decline from the current level, Havells India stock possess the potential to appreciate to ₹1,700 in the near term. Given the above, we recommend traders to buy the stock now at ₹1,575 and buy more shares in case the price dips to ₹1,420. Initial stop-loss can be at ₹1,340. When the stock rallies past ₹1,600, alter the stop-loss to ₹1,520. Exit at ₹1,725.

L&T Finance Holdings (₹171.3)

Strong buying seen

The stock of L&T Finance Holdings (L&TFH) has been in a steady uptrend since March 2023. But after reaching ₹170-175 price band in early 2024, the upswing lost momentum. However, there was no decline in the price as the stock was largely moving in a sideways trend. That said, the candlesticks on the weekly chart show that there is good buying interest between ₹160 and ₹170 as there are long wicks.

So, we expect the stock to eventually break out of ₹175 and establish another leg of rally, which can take the price to ₹200. So, one can buy the stock now at around ₹170 and accumulate if the price dips to ₹165. Place stop-loss at ₹155 initially. When the price rallies to ₹185, tighten the stop-loss to ₹175. Book profits at ₹195.

Steel Authority of India (₹137.6)

Bounces off a strong support

The stock of Steel Authority of India (SAIL) began its latest leg of uptrend in November after taking support at ₹82. There was a sharp drop in price in February, as the stock faced a resistance at ₹150. But then, it has seen a recovery in the last couple of weeks and it closed at nearly ₹138 on Saturday. Since SAIL has bounced off the important 50-day moving average support, we expect this rally has the strength to lift the price to ₹150.

However, there could be a correction in price from here before the next leg of rally. So, we suggest going long at the current level of ₹138 and accumulate if the price dips to ₹128. Place initial stop-loss at ₹120. When the stock touches ₹145, tighten the stop-loss to ₹138. Liquidate the longs at ₹150.

Published on March 2, 2024