Cholamandalam Investment and Finance (₹1,089)

At a demand zone

The stock of Cholamandalam Investment and Finance appears to stay in a broad horizontal trend. Since July last year, it has been fluctuating within ₹1,030 and ₹1,275. After seeing a decline in price over the past couple of months, the stock has reached the bottom of the range. A trendline also overlaps at this support. So, the odds for a rally are high from the current level.

In the next few months, the stock is likely to appreciate towards the top of the range at ₹1,275. Therefore, we recommend buying this stock now at ₹1,090. Buy more shares if the price moderates to ₹1,040. Place stop-loss at ₹985 initially. Raise this to ₹1,075 when the price goes above ₹1,175. Book profits at ₹1,250.

DCM Shriram Industries (₹189.4)

Finds support and rebounds

DCM Shriram Industries began its rally in June 2023. But after hitting a record high of ₹228 in February this year, the stock made a U-turn. The share price fell sharply between mid-February and mid-March. However, the price band of ₹160-165 acted as a strong support, arresting the fall. A rising trendline coincides at this price region, making it an important support.

Considering the rebound in price and that the overall trend is bullish, we anticipate the stock to appreciate from here. So, buy DCM Shriram Industries now at ₹190 and on a decline to ₹175. Place initial stop-loss at ₹155. Revise this to ₹185 when the stock rises past ₹200. Tighten the stop-loss further to ₹200 when the stock touches ₹215. Book profits at ₹225.

Karur Vysya Bank (₹182.4)

Signs of a recovery

Karur Vysya Bank’s stock has been steadily rallying since June 2022. Nevertheless, in early February 2024, the stock made a reversal and descended. That said, over the last two weeks, the stock seems to be witnessing some buying interest. The last two candlesticks on the weekly chart are bullish. Moreover, the stock has moved back above the 20- and 50-day moving averages. Hence, the probability of a rally is high.

We could see the price hitting ₹200 in the near term. So, traders can go long on Karur Vysya Bank at the current level of ₹182. Accumulate on dips to ₹175. Keep initial stop-loss at ₹165. When the stock surpasses ₹190, tighten the stop-loss to ₹178. Liquidate at ₹200.