Movers & Shakers . Stocks that will see action this week

HDFC Bank (₹1,390.5): Trades near strong base

The stock of HDFC Bank, which broke out of a range of ₹1,350-1,490 a couple of weeks ago, reversed the direction soon. That is, after marking a fresh lifetime high of ₹1,511.6, the scrip made a U-turn and began to depreciate.

Consequently, it made a two-month low of ₹1,342 last week, before recovering to ₹1,390.5. Despite the selling pressure, bulls fought back towards the end of last week so as to retain the validity of the support at ₹1,345 and until the stock continues to trade above this level, it can be inclined towards an uptrend.

Given the above factors, traders can be bullish and consider initiating fresh long positions. The stop-loss should be strictly maintained at ₹1,340 as a breach of this level can result in a sharp sell-off. Targets can be ₹1,440 and ₹1,470.

Colgate Palmolive (₹1,603.3): Bounces up from a support level

While the whole market was under pressure, the stock of Colgate- Palmolive was one among the few that bucked the trend and appreciated last week. In fact, there are new signs of upward momentum being built up.

The scrip, which registered a fresh all-time high at ₹1,676 two weeks ago, had been witnessing a corrective decline. However, it found support at ₹1,500 from where it rebounded. Notably, this price level has been providing good support for the stock for the past two months and more the stock rises from this level, the stronger the support will be.

Last week’s rally was on the back of increasing volume, indicating good build-up in long positions. So, traders can buy the stock with a stop-loss at ₹1,540. The stock is likely to touch ₹1,700.

UPL (₹560.6): Likely to rally from here

The rally that began in mid-December last year lifted the stock of UPL from about ₹420 to ₹601.1. The scrip touched the price level of ₹601.1 last week and notably, this price is very close to the 52-week high of ₹601.4.

Thus, the stock looks to be moving up with good momentum and it is only a matter of time before it registers fresh high. Corroborating the bullish view, the relative strength index and the moving average convergence divergence indicators on the daily chart remains in the bullish territory.

Also, the price is well above the 21-day moving average, signalling good positive momentum. Considering the above factors, one can go long with a stop-loss at ₹540. The stock can rally to ₹585, above which it can retest the 52-week high of ₹601.4.

Alkem Laboratories (₹3,006.9): Hovers at support

The stock of Alkem Laboratories has been on an uptrend since early November last year from when it rallied from about ₹2,600 to a fresh lifetime high of ₹3,151.5 last week. Nevertheless, reading the recent price action, the stock is largely moving in a rectangular pattern — between ₹3,000 and ₹3,140.

But the scrip stayed resilient even as most of the stock faced significant sell-off the past two weeks. Thus, the stock does not seem to attract selling interests and has been holding steady. This is an indication that the likelihood of the scrip falling from here is low and it might soon rally from the current level where the 21-day moving average lies.

Hence, traders can consider going long with a stop-loss at ₹2,925 — its 50 day moving average. Potential target can be ₹3,140.

United Spirits (₹578.7): Slips below a key level

The stock of United Spirits, which attempted to break out of the resistance at ₹650 a couple of weeks ago, again took a failed bid to crack that resistance last week and started to depreciate. The decline was sharp, supported by huge volume; consequently, it broke below the support of ₹600.

The price also slipped below both the 21- and 50-day moving averages, turning the outlook bearish. Substantiating the negative bias, the daily relative strength index has entered the bearish zone and the moving average convergence divergence indicator on the daily chart is showing a strong downtick.

Going by the above factors, the stock is likely to extend the downswing and so, one can short with a stop-loss at ₹600. Potential targets can be ₹545 and ₹520.

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