Movers & Shakers. Stocks that will see action this week

Engineers India (₹72.75)

Indicates turn around

Although the long-term trend for the stock of Engineers India is down, it has now risen above a resistance. This has changed the near-term outlook positive. The scrip rallied above an important level of ₹70 last week which also resulted in the invalidation of a falling trendline resistance. The price action on the weekly chart resembles an inverted head and shoulder pattern, an indication of a bullish price reversal.

We forecast the stock to appreciate from here and touch ₹85 in two-three months. But as with any breakout, there is a likelihood of the stock retesting ₹70. So, one can buy the stock at the current level of ₹72.75 and add more shares when price dips to ₹70. Keep the stop-loss at ₹64 at first and move it up to ₹76 when price touches ₹80. Liquidate all your long positions when the stock hits ₹85.

Glenmark Pharmaceuticals (₹421.35)

Signs of bullish reversal

The long-term trend of the stock of Glenmark Pharmaceuticals is bearish. The latest leg of downtrend occurred between July 2021 and June 2022. But since then, it was stuck in the range of ₹360-400. Last week, the scrip broke out of this range above ₹400, turning the short-term trend positive. We expect this to lift the stock up to ₹530 within a year.

However, before moving above the minor resistance at ₹430, the price could see a dip to ₹400. Therefore, we suggest buying the stock now and on a dip to ₹400. Place initial stop-loss at ₹385 at first. Shift it up to ₹460 when price goes above ₹485. When the stock hits ₹500, liquidate half of the longs. Tighten the stop-loss to ₹480 for the rest of the holding. Exit the remaining at ₹530, as it is a resistance and there could be a price correction off this level.

Supreme Industries (₹2,238.8)

Inverse Head and Shoulder

The corrective decline in the stock of Supreme Industries seem to have come to an end as it has rebounded from a support at ₹1,700 in June. Last week, the stock rallied and marked a higher high on the weekly chart by breaching a hurdle at ₹2,150. This also happens to be the neckline of the inverse head and shoulder pattern which now stands confirmed. As per this, the stock is likely to appreciate to ₹2,600 in a quarter or two.

That said, one should be prepared to see a price drop to ₹2,150 before the stock establishes the next leg of rally. So, we recommend going long at the current level of ₹2,238 and accumulate if there is a decline in price to ₹2,150. Place initial stop-loss at ₹1,980. When the stock moves above ₹2,350, revise the stop-loss to ₹2,225. Book profits at ₹2,600.

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