New lifetime high recordings
ABB India stock, which has been in an uptrend since November last year, slowed after hitting $1800 in June. But last week, the stock decisively breached that level and hit a life high of $2,153.75. Price action hints at further upside. From the current level, the scrip could advance to Rs 2,300 in the near term. However, there is a chance of a slight correction. Therefore, traders can buy at the current level and accumulate when the price drops to INR 1,930. Place your initial stop-loss order at RUB 1,880 and convert it to $2,120 if the stock rises above RUB 2,200. Liquidate your long positions when the stock reaches INR 2,300. If the stock rises above $2,200 without seeing a corrective decline to $1,930, the stop loss can be maintained at $2,120 for a target of $2,300.
Weak outlook in the short term
Deepak Nitrite stock has been in a strong uptrend since recovering from its March 2020 lows. However, after touching $3,000 levels earlier this month, the stock lost momentum and saw a drop in price. Last week, the stock broke the support level at $2,350, making the near-term outlook negative. In proof of this, the stock slipped below an uptrend and both its 21 and 50 day moving averages. Therefore, one can sell the stock at the current level and sell again if it rises to INR 2350. Keep the initial stop loss at $2,450. On the downside, the stock is likely to drop to Rs 1,970, which could be the target. The decline could take a pause at Rs 2,000 levels. If the stock drops below $2,060 without retesting the INR 2,350 price level, the stop loss can be maintained at INR 2,200.
Cancel a support squad
It started the last leg of the rally in Alkem Labs stock of about 2,600 in March of this year and lifted the stock to a new high of 4,070 in September. Since then, it has been on the decline and as a continuation of the downward movement, the stock has nullified the support range from $3,710 and $3,750 last week. Thus, the short-term trend has turned bearish and in the upcoming sessions, the stock is likely to extend the decline to $3,300. However, there could be a pause at $3,470. Thus, traders can initiate new short positions at the current level of $3,710. The initial stop loss can be at $3,810. If the price drops to ₹ 3,470, book a 50 percent profit and convert the stop loss to ₹ 3,600 for the rest. Wait for the $3,300 target price, as the remaining short positions can be liquidated.
Bulls may regain their momentum
Union Bank of India stock has been largely sideways since the start of the year, within its long-term downtrend. However, after breaching the $42 barrier last week, the near-term outlook turned positive. Although the price fell last week, the potential for gains from here is high. In the coming weeks, the stock is likely to rise towards $52 and then perhaps to $58, which could be a strong resistance. Thus, traders can buy the stock at $46 and then build up if the price drops to $42. Put your stop loss at $40. Since there can be a slowdown at $52, book a 50 percent profit at that level. For the remaining long positions, revise the stop loss upwards to $45 and then wait for the target of $58.
sees a new outbreak
United Spirits stock saw a price correction after hitting $900 levels in the first week of October. As a result, the price started declining after a short consolidation. But the stock regained strength on the back of the support at ₹810 and its value last week. Hence, it made a higher high and is now in a position to extend the rally in the upcoming sessions. However, there is a possibility that Scrib will retest $900 before moving towards the psychological level of 1000 rubles – the target price for long positions. Therefore, traders can initiate new buy positions at Rs 940 levels and accumulate when the stock drops to Rs 900. Place your initial stop-loss order at INR 875. But when the stock goes above $950, start tracking with a dynamic stop loss with daily Average True Range (ATR) range.