Nava (₹554.85)
Exhibits good momentum
The stock of Nava has posted a gain for three weeks straight indicating a strong upward momentum. Thus, the uptrend, which began in mid-February, appears to be retaining the strength. That said, there is a chance for the stock to witness a temporary price drop from the current level. Such a corrective decline is likely to be arrested by the ₹500-520 support band.
On the upside, the stock can rise to ₹660. We recommend buying at ₹550. Accumulate if the price dips to ₹520. Keep a stop-loss at ₹480. When the price rises to ₹600, trail the stop-loss to ₹550. Tighten the stop-loss further to ₹600 when the stock rallies to ₹630. Liquidate the longs at ₹660.
Oil India (₹477.85)
Uptrend steady
Oil India’s stock has been in an uptrend since early April after finding support at ₹325. The latest leg of the rally has been in place since past two weeks as it bounced off ₹420. The chart appears positive. Although there might be some moderation in price from the current level, it is likely to be limited. So, going ahead, we expect the stock to soften to ₹450 and resume the rally.
This upswing can lift Oil India’s share price to ₹600. While moving up, there might be some consolidation at around ₹550, a minor hurdle. Buy at ₹475 and ₹450. Place the stop-loss at ₹400. Revise the stop-loss up to ₹470 when the stock hits ₹520. Move the stop-loss further higher to ₹520 when the price touches ₹570. Exit at ₹600.
RHI Magnesita (₹504.60)
Forms a higher base
The stock of RHI Magnesita has seen a notable uptick in price since June 5. Thus, it has now rebounded from the ₹430-435 support band twice since early May, indicating that the scrip has formed a good base. Following this, the stock broke out of the resistance at ₹475 last week. This has opened room for further rally.
Although there is a hurdle at ₹525, we expect the stock to rise past this level and appreciate to ₹700 over the medium-term. So, traders can go long at ₹500 and buy more shares at ₹475. Place the stop-loss at ₹420. When the stock touches ₹600, alter the stop-loss to ₹550. Move the stop-loss higher to ₹600 when the price hits ₹650. Book profits at ₹700.