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Berger Paints India (₹580.6)
Signs of bullish reversal
The stock of Berger Paints India has been on a downtrend since October 2021. But the price action since May 2022 shows that the scrip is attempting to form a base at around ₹550. Last week, the stock formed a higher high on the daily chart, giving the bulls some impetus. Thus, we expect the prices to rise, at least in the short-term. The nearest notable barrier is at ₹625. Yet, before a rally, we might see a corrective decline towards ₹565. Considering these factors, one can buy Berger Paints at the current level of ₹580. Buy more shares if price dips to ₹565 and place stop-loss at ₹545. Move the stop-loss to ₹585 when the stock rallies past ₹600. Liquidate the longs at ₹625.
BPCL (₹321.2)
Remains below hurdle
The stock of Bharat Petroleum Corporation Ltd (BPCL) has been on a decline since mid-January after it faced a resistance at ₹350. A couple of weeks ago, it slipped below a support at ₹324. Although the stock posted a gain last week, it largely appears to be a corrective one. We expect the stock to resume the next leg of downswing this week. Since the nearest support is at ₹300, we might see the price falling to this level in the short term. Therefore, one can consider initiating fresh short positions at the current level of ₹321. Keep initial stop-loss at ₹330. When the stock falls below ₹308, tighten the stop-loss to ₹320. Book profits at ₹300 since there might be a bounce off this support.
ZEE (₹200)
Rebounds from support
The stock of Zee Entertainment Enterprises (ZEE) witnessed its recent leg of downtrend in the last five months. It fell off the resistance at ₹280. However, the candlesticks of the last two weeks show that there is a good buying between ₹175 and ₹190. The stock has formed a bullish pin bar last week, indicating a trend reversal. It has the potential to retest ₹280 in two or three months. Given the prevailing conditions, traders can consider buying the stock of ZEE at the current level of ₹200 and add more longs when price dips to ₹185. Place stop-loss at ₹170 initially. Modify the stop-loss to ₹200 when price goes above ₹215. When the stock touches ₹250, exit two-thirds of the longs and revise the stop-loss to ₹235. Exit the remaining at ₹275.
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