Amrutanjan Health Care (₹748.2)
Confirms double-bottom pattern
Amrutanjan Health Care’s stock overcame the resistance at ₹735 a fortnight ago. This has led to the formation of a higher high on the weekly chart, a bullish sign. In addition, the breakout of ₹735 also means that the stock has confirmed a double-bottom pattern, indicating a bullish reversal. Hence, the probability is high for the stock to appreciate from here.
According to the chart pattern, the price can rise to ₹900. Therefore, traders can go long now at around ₹750 and accumulate if the price retraces to ₹700. Place stop-loss at ₹650. Revise this up to ₹750 when the scrip touches ₹810. Move the stop-loss further up to ₹800 when the price reaches ₹850. Liquidate the longs at ₹900.
Strong support ahead
JSW Energy’s stock lost a little over 11 per cent last week. The decline was restricted by the support at ₹525, where the 20-week moving average lies. Below this is a rising trendline support. Thus, the price band of ₹500-525 is a good base and the share price is unlikely to fall below this region. Going ahead, we expect the scrip to see some more moderation, possibly to ₹525, and then witness the resumption of the broader bull trend.
Therefore, participants can go long on JSW Energy at the current level of ₹570. Buy more shares if the price dips to ₹535. Place initial stop-loss at ₹500. When the stock surpasses ₹600, revise the stop-loss to ₹560. Trail the stop-loss to ₹590 when the price touches ₹620. Exit at ₹640.
Stock set to resume uptrend
REC’s stock depreciated 8 per cent last week. But that was largely due to the fall on Monday. In the following sessions, it was tracing a sideways trend between ₹500 and ₹540. That said, the broader trend is bullish, and we see the latest fall in price just as a corrective decline. While there is a chance for the downswing to reach ₹475, the stock is expected to resume the rally.
There is a potential for it to hit ₹600 in the near term. So, buy now at around ₹510 and on a dip to ₹475. Keep initial stop-loss at ₹440. Once the stock appreciates to ₹570, move the stop-loss upwards to ₹535. When the price touches ₹585, raise the stop-loss further to ₹560. Book profits at ₹600.