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Britannia Industries (₹4,797.6)
Faces strong barrier
Britannia Industries’ stock has been in a steady downtrend since early this year. It started falling on the back of the resistance at ₹5,370. Notably, the stock has been falling in a downward channel. Last week’s rally has now taken the scrip to the upper end of the channel, at ₹4,850. Around this price region, the 20-, 50- and 100-day moving averages coincide, making it a strong barrier.
We expect Britannia Industries’ stock to resume the fall and retest the support at ₹4,650. Hence, one can short the stock now at ₹4,800. Place initial stop-loss at ₹4,875. When the price dips to ₹4,720, revise the stop-loss to ₹4,800. Move the stop-loss further lower to ₹4,760 when the price falls to ₹4,680. Exit at ₹4,650.
Excel Industries (₹1,043.2)
Outlook turns bullish
Excel Industries’ stock has gained nearly 50 per cent so far this month. The swift rally has lifted the stock above the key hurdle at ₹1,000. The outlook has now turned bullish. There is a possibility for the price to see a correction. However, it cannot overturn the upward trend and the decline will most likely be limited to ₹900. Post this move, Excel Industries can resume the upswing where the price is expected to touch ₹1,250.
Therefore, we recommend buying this stock now at ₹1,043 and accumulate if the price softens to ₹920. Keep initial stop-loss at ₹840. When the scrip rises to ₹1,130, alter the stop-loss to ₹1,070. Further, raise the stop-loss to ₹1,150 when the price moves to ₹1,200. Liquidate the longs at ₹1,250.
Valor Estate (₹232)
Cup and handle pattern seen
The stock of Valor Estate, earlier DB Realty, has been showing recovery in April after witnessing a considerable fall in price in March. It bounced off the support at ₹195 early this month. Currently trading at ₹232, the stock shows potential to appreciate. A clear breach of ₹232 will confirm a cup and handle, a bullish chart pattern.
While there could be a correction to ₹220, we anticipate Valor Estate’s share price to go up to ₹280 in the near term. Traders can buy this stock now at ₹232 and add longs if the price moderates to ₹220. Place initial stop-loss at ₹200. When the stock rises to ₹250, lift the stop-loss up to ₹230. Tighten the stop-loss to ₹250 when the price hits ₹265. Book profits at ₹280.
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