Balkrishna Industries (₹2,266.3)

Drops off supply zone

Balkrishna Industries, after hitting a record high of ₹2,793.70 in January, has been on a downtrend. Few weeks ago, the stock slipped below the 50-week moving average and another important support at ₹2,350. The scrip is unable to move back above ₹2,350, which is now a resistance, and the price action indicates good selling interest.

We expect the stock to depreciate towards the support band of ₹2,000-2,050 in the near future. Hence, traders can short Balkrishna Industries at around ₹2,270 and add shorts in case the price rises to ₹2,350. Place stop-loss at ₹2,430 initially. When the stock falls to ₹2,120, move the stop-loss lower to ₹2,210. Liquidate the shorts at ₹2,050.

Hindustan Unilever (₹2,327.9)

Breaks below a support

Hindustan Unilever’s stock, between July 2022 and January 2024, was charting a broad sideways trend. It was oscillating between ₹2,440 and ₹2,740. But last month, the stock closed below ₹2,440, opening the door for further decline. The nearest notable support is the price region between ₹2,100 and ₹2,000. Since the probability of the price dropping to ₹2,100 is high, we suggest initiating short positions.

Sell now at ₹2,330 and on a rise to ₹2,400. Place initial stop-loss at ₹2,500. When the stock falls to ₹2,200, revise the stop-loss downwards to ₹2,270. Once the price touches down on ₹2,150, exit half of the shorts. Hold the remaining positions with a tightened stop-loss at ₹2,200, and exit at ₹2,100.

Mphasis (₹2,488.7)

Forms bullish pin bar

Mphasis’ stock has been on a rise since May last year, as it found support at ₹1,700. After reaching ₹2,800 in early 2024, it lost momentum. Particularly, over the past month, the stock depreciated considerably. However, in the final two sessions of last week, it bounced off a support at ₹2,360. Consequently, it formed a bullish pin bar. Also, a trendline support coincides at ₹2,360.

We anticipate a rally in price in the coming weeks, potentially to retest ₹2,800. So, buy Mphasis shares now at ₹2,490 and accumulate at ₹2,430. Keep initial stop-loss at ₹2,285. When the stock rises to ₹2,640, trail the stop-loss to ₹2,500. Tighten the stop-loss further to ₹2,670 when the price hits ₹2,730. Book profits at ₹2,800.