GNFC (₹682.6)
Set to rebound
The stock of Gujarat Narmada valley Fertilizers and Chemicals (GNFC) has been in a recovery mode since mid-March. Although it made a higher high in early April, there has been some price correction, particularly in the last week. But the decline was arrested at ₹660, which is a strong support where 20-, 50- and 200-moving averages coincide.
So, there is a high chance for the stock to rebound. It can rally to ₹800 in the short term. Therefore, one can buy the stock of GNFC now at around ₹680. Keep initial stop-loss at ₹640. When the stock surpasses ₹720, modify the stop-loss to ₹680. When the price touches ₹760, raise the stop-loss further to ₹725. Liquidate the position at ₹800.
Godawari Power and Ispat (₹869.4)
Breaks out afresh
The stock of Godawari Power and Ispat has been steadily appreciating since June last year. But since the beginning of 2024, it has remained subdued. Last week, the stock witnessed a fresh breakout and hit a record high of ₹880. Given the prevailing chart set up, the probability of further rally is high. The scrip has the potential to touch ₹1,000 in the near term.
That said, there might be a corrective decline from here, possibly to ₹800 before the next upswing. So, we suggest buying this stock now at ₹870 and accumulate if the price dips to ₹800. Place initial stop-loss at ₹750. When the stock crosses over ₹900, raise the stop-loss to ₹850. Move it up further to ₹920 when the price hits ₹970. Book profits at ₹1,000.
Tech Mahindra (₹1,193.8)
Slips below a support
Tech Mahindra’s stock has been on a decline since the final week of January. Last week, it dropped below the 200-day moving average support and also a rising trendline support. This has turned the outlook weak for the stock in the short term. The nearest support from the current level is seen at ₹1,115. Subsequent support is at ₹1,030.
We expect the price to decline to ₹1,030 from here. But the stock could see a minor recovery, probably to ₹1,240, before touching the above-mentioned supports. So, consider going short now at ₹1,194 and add shorts if the price rises to ₹1,240. Place initial stop-loss at ₹1,300. When the price moderates to ₹1,115, tighten the stop-loss to ₹1,150. Exit at ₹1,030.