Short-term bullish reversal

Lupin’s stock bounced off a support at ₹640 towards the end of March. In the subsequent weeks, it gained further ground and particularly, it broke out of the barrier at ₹780 last week. This has potentially turned the short-term trend up. We anticipate a move by the stock towards ₹960 in the coming weeks. But there might be a dip in price to ₹780.

Considering these factors, we suggest going long on the stock of Lupin at the current level of ₹817. Add more longs in case the price softens to ₹780. Place initial stop-loss at ₹740. When the stock appreciates above ₹875, trail the stop-loss to ₹845. Raise the stop-loss further to ₹895 when the price surpasses ₹920. Book profits at ₹960 – a considerable resistance.

Also read: Index Outlook: Uptrend likely to resume in Nifty 50, Sensex

Max Healthcare Institute (₹531.6)

Set to resume the rally

Max Healthcare Institute’s stock, in the second week of May, decisively breached a supply zone between ₹470 and ₹480. It then rallied to hit a record high of ₹564.95 on May 23. However, the stock has seen a decline in price recently. Yet, the major trend is bullish and the stock remains above some key levels. So, the fall in price is mostly likely to be a corrective descent.

We expect the scrip to gain momentum this week. Max Healthcare has the potential to move up towards ₹600 in the coming weeks. Hence, one can buy this stock at the current level of about ₹532. Add more longs if the price moderates to ₹510. Place initial stop-loss at ₹480. Alter the stop-loss to ₹545 when the stock goes beyond ₹570. Liquidate at ₹600.

Also read: F&O Strategy: Bull call spread on TVS Motor

Olectra Greentech (₹769.7)

Breaches a key hurdle

Olectra Greentech’s share price hit a 52-week high of ₹786 last week before closing the week a little lower at ₹769.7. This has led to the breach of a key hurdle at ₹720, which had significantly improved the chances for the stock to rally further. We expect it to see a corrective decline, possibly to ₹720, and then move up. The nearest notable resistance is at ₹900.

Given the current chart setup, we recommend buying shares of Olectra Greentech at the current level of about ₹770. Accumulate more shares if the price dips to ₹720. Keep the initial stop-loss at ₹670. When the stock moves above ₹825, modify the stop-loss to ₹780. Tighten the stop-loss further to ₹835 when the price goes above ₹860. Exit at ₹890.

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