Comments
Chalet Hotels (₹406.4)
At a demand zone
Chalet Hotels has been in an uptrend since early 2021. In early May this year, the stock penetrated through a resistance band ₹390-400, opening the door for further appreciation. However, after reaching ₹450 a month ago, the stock faced downward pressure because of which its price has now softened to ₹406.4. But note that the price band of ₹390-400 will be a support.
We expect Chalet Hotels’ share price to start moving up on the back of this. So, one can buy the stock now at around ₹406 and add more longs in case the price dips to ₹390. Place stop-loss at ₹370; shift this up to ₹410 when the price rises above ₹430. Further tighten the stop-loss to ₹440 when the stock hits ₹460. Exit at ₹480.
Exide Industries (₹232.4)
Breaks out afresh
Exide Industries’ stock has been on a rise ever since it took support at ₹130 in June last year. Notably, it broke out of a key resistance at ₹220, which also happens to be the neckline of a double-bottom chart pattern. Thus, the probability of the stock going up further is high and according to the pattern, the potential is up to ₹300. But there could be a minor corrective decline, possibly to ₹220.
Therefore, traders can go long on the stock of Exide Industries at the current level of ₹232 and add more longs in case the price softens to ₹220. Keep an initial stop-loss at ₹208; move it up to ₹240 when the stock rallies past ₹250. Similarly, when the price goes above ₹260, modify the stop-loss to ₹250. Book profits at ₹270.
The Ramco Cements (₹930.1)
Corrective decline likely
The stock of The Ramco Cements, after breaking out of a hurdle at ₹815 last month, rose sharply. After rallying in the recent weeks, the stock has now reached a supply zone between ₹930 and ₹950. Also, the daily RSI is now at the overbought levels. So, although the trend is bullish, there is a good chance for the stock to see a corrective decline to ₹860 in the near term. Hence, fresh short positions can be taken.
However, note that this is a high-risk trade as it is a counter trend one. So, traders with high risk appetite can short The Ramco Cements at the current level of ₹930. Place stop-loss at ₹965. When the price slips below ₹890, alter the stop-loss to ₹915. Bring the stop-loss further down to ₹890 when the stock declines below ₹875. Liquidate the shorts at ₹860.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.