Aarti Industries (₹634.6)
Potential bullish reversal
The stock of Aarti Industries faced a resistance at ₹750 in April and the price declined. However, looking at the long-term trend, the recent fall is likely to be only a corrective one. We forecast the stock to resume the rally from the current level. While there might be a minor dip to ₹600, the stock is expected to move up eventually and surpass ₹750 to hit ₹950 in the coming months.
So, buy now at around ₹634 and accumulate at ₹600. Place the stop-loss at ₹540. When the stock rises above ₹700, modify the stop-loss to ₹620. Raise the stop-loss to ₹680 when the price goes beyond ₹770. At ₹850, exit one-third of the holding and alter the stop-loss for the remaining to ₹780. Liquidate the balance at ₹950.
Dr Lal PathLabs (₹2,797.8)
On the verge of a breakout
The stock of Dr Lal PathLabs has been fluctuating in a broad ₹1,820-2,800 price band since March 2022. But the recent rally that began in March this year shows potential for a fresh breakout. Since the stock closed near the range-top last week, we can expect the price to soften a bit, possibly to ₹2,500. But it can resume the upswing, break out of ₹2,800 and head to ₹3,700 over the medium term.
While risk-averse traders can wait for a clear breakout and buy, others can go long now at ₹2,800. Accumulate at ₹2,500. Place stop-loss at ₹2,325. When the stock moves above ₹3,000, raise the stop-loss to ₹2,800. On a rally to ₹3,300, liquidate half of the longs and then modify the stop-loss to ₹3,100. Exit the remaining at ₹3,650.
SRF (₹2,310.2)
Forms bullish pin bar
SRF’s stock, since October 2021, has been tracing a sideways trend. That is, the scrip has been oscillating in the broad range of ₹2,100-2,700. Ideally, the trend is flat. However, there is a short-term opportunity. The stock is now hovering near the bottom of the range and last week, it formed a bullish pin-bar candlestick. These factors increase the chance for a rally from here.
So, we suggest going long on the stock of SRF, now at ₹2,310. Buy more shares if the price dips to ₹2,150. Place stop-loss at ₹2,050. When the price rises past ₹2,430, modify the stop-loss to ₹2,300. Move the stop-loss further up to ₹2,500 when the stock touches ₹2,600. Liquidate the longs at ₹2,670.
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