healthy uptrend
KPR Mill stock has been in an uptrend since August 2020 after breaking out of ₹100. There have been intermittent corrections along the way that weren’t deep and therefore, the rally appears to be very healthy. Therefore, the probability of an overestimation is high. In the coming weeks, the stock is likely to surpass its life high of $647, made last week, and touch $670. It has the potential to post around ₹720 in the medium term. But a price correction to $550 cannot be ruled out. Therefore, one can buy at the current level and accumulate more when the price drops to INR 550. Keep the initial stop loss at INR 520. When the stock reaches $670, consider booking 50 percent of the positions and then revising your stop loss to $600. Clear the remaining long positions when Scrib’s stock rises to INR 720.
A new outbreak was seen
Fixed Systems stock has been in a long-term uptrend since March 2020. This uptrend paused in October of this year and the stock was consolidating sideways between $3,750 and $4,500. However, last week, it broke out from $4,500 in high volume . On the back of a long-term uptrend, the stock is poised to see another phase of ascent towards $5,075. Fibonacci extension points to a possible move to INR 5,130 in the medium term. However, from here, it could see a drop to $4,420 before hitting new highs. Hence, traders can buy the stock now and also buy when the price reaches Rs 4,420. Set your initial stop loss at $4,200. Liquidate 50 percent of the positions at $5,075. Next, adjust your stop loss to $4,850 for the rest and exit at Rs 5,130.
The outlook turns bearish
The Indian Oil Corporation (IOC) stock saw the last stage of its rally between the last week of August and mid-October. During this period, its value increased from around Rs 100 to Rs 140. Unable to break through this level twice, the stock started falling. Last week, it broke below the key support level at $117, making the outlook negative. The downtrend looks strong. In the coming weeks, the stock is likely to pull further lower with the nearest support at the ₹100-₹103 price range. However, the stock could retest the support-turned-resistance level at $117 before retracing towards the aforementioned support range. Given this, traders can sell the shares at the current level and add sell orders when it rises to Rs 117. Set your initial stop loss at $121. Get out all the shorts at the top end of the backing bar, i.e., ₹103.
Under the main support
City Union Bank stock, since hitting resistance at ₹ 190 in November last year, has been moving with a bearish bias. While it rebounded from support at ₹144 in August this year, the rally was not sustained. The stock started to drop again from ₹ 175 in November this year. Last week, it fell below the crucial support of Rs 144 and thus, the chances of a steady fall from here are high. Although there is a slight support at $130, the stock is expected to drop to $120 in the next three to three months. But we could see a pullback to $144 before it drops further. Therefore, one can sell the shares at the current levels and at $144. Keep your stop loss at INR 152. When it drops below INR 130, see stop loss at INR 138. Totally take out 120 INR as it is a huge support.
Bears feature
The long-term trend of Bajaj Finserv stock is up and in line with this, it has remained on its upward trajectory in 2021, until September. But then it started charting a horizontal trend and was largely swinging between $16,700 and ₹19,000. Last week, it broke below $16,700 and started the last downside move after meeting the descending trendline resistance at around INR 17,800. The short term trend is now bearish, hence the stock is expected to decline further. The immediate support is 15,700 rupees. But it is likely that this will be breached and the stock could drop to $14,620. Therefore, traders can take a bearish view and sell at the current levels. Add more shorts if the price goes up to £16,900. Place your stop loss order at INR 17,500. Convert it to $16,700 once the stock drops below $15,700. Filter the shorts entirely at Rs 14,620.