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EPL (₹249.55)
Confirms cup and saucer pattern
EPL’s stock gained a little over 15 per cent last week. It had appreciated for the second week in a row. This has led to the breakout of a barrier at ₹235 and also the confirmation of a cup and saucer pattern. This indicates that the outlook has turned bullish and as per the pattern, EPL’s share price can rise to ₹315. That said, there might be a minor dip from the current level, probably to ₹225.
Hence, participants can initiate longs at the current level of ₹250 and accumulate if the price drops to ₹225. Place initial stop-loss at ₹200. When the price hits ₹280, revise the stop-loss to ₹255. Adjust the stop-loss further up to ₹280 when the stock appreciates to ₹300. Liquidate the longs at ₹315.
Jindal Stainless (₹701.65)
Bounces off a demand zone
The stock of Jindal Stainless has been on a decline for a little over a month. It fell off the barrier at ₹840 in early July. However, last week, the scrip bounced off the support band of ₹610-640. The 50-day moving average coincides at this price region, making it a good demand zone. The rebound is likely to sustain and we expect the stock to see an upswing from the current level.
There is a good chance for it to retest the barrier at ₹840. Therefore, traders can buy now at around ₹700 and add longs if the price dips to ₹660. Keep stop-loss at ₹600. When the price goes above ₹750, raise the stop-loss to ₹680. Tighten the stop-loss further to ₹750 when the stock touches ₹800. Book profits at ₹840.
Zydus Lifesciences (₹1,187.2)
Resting on a support
Zydus Lifesciences’ stock slipped nearly 9 per cent last week. However, the overall uptrend remains valid and the scrip is now hovering near a trendline support at ₹1,150. The 50-day moving average also coincides at this level. Even if this base is breached, the downside can be arrested at ₹1,100, a strong support. The stock can resume the rally from the current level or after a decline to ₹1,100.
So, buy the stock of Zydus Lifesciences at the current market price of ₹1,187 and accumulate if the price dips to ₹1,120. Place stop-loss at ₹1,070. When the stock rallies above ₹1,300, alter the stop-loss to ₹1,200. Tighten the stop-loss further to ₹1,350 when the stock rises to ₹1,420. Exit at ₹1,480.
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