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.
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.
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.