Infosys (₹1,929.4)
Fresh leg of rally
The stock of Infosys, which is on a secular uptrend, entered a consolidation phase in August last year. It was oscillating within ₹1,660 and ₹1,800. However, the stock broke out in December and last week, it hit a record high of ₹1,933. Going ahead, the stock will most probably see a fresh leg of rally. On the upside, the nearest possible hurdle can be the next psychological level of ₹2,000. Nevertheless, as the stock has seen a fresh breakout, it is forecast to move above ₹2,000 and hit ₹2,030 in the near term. But there could be a minor correction to ₹1,880 from here. So, one can buy the stock at current levels and accumulate if price dips to ₹1,880. Stop-loss can be at ₹1,850. When stock touches ₹2,000, liquidate three-fourth of the longs and exit the remaining when it rises to ₹2,030.
L&T (₹2,044.8)
Hits new all-time high
The stock of Larsen & Toubro (L&T), which saw a corrective decline in November last year, found support at ₹1,750. Since then, it has been appreciating. Last week, it went past the previous high of ₹1,981.75 and marked a fresh all-time high of ₹2,049.95. Thus, the outlook remains positive, and the stock is likely to scale new heights from the current levels. But the stock could moderate to ₹1,975 before making further progress. On the upside, it can rally to ₹2,230 in three months. Yet ₹2,136, and ₹2,200 can act as intermediate resistances. So, trade plan should be made accordingly. That is, go long at current levels and accumulate on a dip to ₹1,975 with an initial stop-loss at ₹1,930. Book 50 per cent profit at ₹2,136 and then liquidate 25 per cent at ₹2,200 and the remaining at ₹2,230.
Tanla Platforms (₹2,061.7)
Triangle breakout
The stock of Tanla Platforms, which saw its price rally from ₹815 in October last year, lost momentum in December after reaching ₹2,000. Although there was no bearish reversal, the stock lost direction and was moving sideways. More so tracing a triangle pattern. The bulls gathered strength last week and moved out of the triangle, indicating a bullish trend continuation. The price action hints at further appreciation but could decline to ₹1,930 before making fresh highs. The stock is likely to gain towards ₹2,225 and could even appreciate to ₹2,360. Given the above factors, one can consider fresh buys at current levels and accumulate on a dip to ₹1,930. Place stop-loss at ₹1,840. When the stock hits ₹2,225, liquidate 30 per cent of the longs and revise stop-loss to ₹2,000. Exit the pending long positions at ₹2,360.
Tata Chemicals (₹1,028.8)
Bulls regaining traction
The stock of Tata Chemicals registered a fresh lifetime high of ₹1,158 in October last year. However, it made a U-turn and the price fell until it found support at ₹830 in November. The bulls seem to be gaining traction of late and the stock is on a rise. Last week, it broke out of the resistance at ₹950, turning the outlook positive. Nevertheless, the scrip could soften to ₹960 before surging further higher. Eventually, it is likely to get past ₹1,100 and touch ₹1,135 in the near term. Considering these factors, one can go long at current level and buy more when the price dips to ₹906. Keep the stop-loss at ₹935. When the stock rallies to ₹1,100, exit 60 per cent of the positions and alter the stop-loss to ₹1,040. Book profits on the remaining long positions at ₹1,135.
Dilip Buildcon (₹389.7)
Strong downward momentum
The stock of Dilip Buildcon, which began to rally from ₹200 in March 2020, saw a considerable rally in price. However, the price band of ₹700 – ₹740 acted as a strong resistance, blocking the scrip twice from moving beyond this level. In October 2021, the stock reversed lower sharply from about ₹700 and is on a steady decline. The downward momentum is strong, and the stock looks set to fall further with notable supports at ₹324 and ₹275. Also, ₹300 can offer support. Nonetheless, a corrective rally to ₹435 is a possibility. Therefore, traders can short now and sell more if the stock rises to ₹435. Stop-loss can be at ₹470. Since there are three key supports, the trade exit can be spread out. Liquidate one-third of the shorts at ₹324 another one-third at ₹300 and the remaining at ₹275.
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