Hindustan Unilever (₹2,368.90)
Approaching a long-term support level
Since September of last year, the stock of Hindustan Unilever has been on a downward trend. In December, there was a brief morning star pattern on the weekly chart indicating a potential bullish reversal, but the price continued to fall. However, last week, the stock bounced back from a long-term trendline support at ₹2,280.
The stock has now exceeded the base of the morning star pattern, increasing the likelihood of a rally. Traders can consider buying at ₹2,365 and ₹2,280 with a stop-loss at ₹2,000. Once the price reaches ₹2,550, the stop-loss can be adjusted to ₹2,400. If the stock reaches ₹2,750, consider selling one-third of the holdings and adjusting the stop-loss to ₹2,600. Move the stop-loss to ₹2,800 when the price hits ₹2,900 and exit at ₹3,000.
Minda Corporation (₹567.85)
Bullish trend emerging
Minda Corporation’s stock was trading sideways between November last year and mid-January this year, fluctuating between ₹480 and ₹550. Recently, the stock broke above ₹550, signaling a possible bullish trend. There may be a slight price correction towards ₹520 in the near term.
However, the stock is expected to resume its upward trajectory after the dip and could potentially reach ₹750. Traders can initiate long positions at ₹565 and accumulate more at ₹520, with a stop-loss at ₹460. Adjust the stop-loss to ₹570 once the price exceeds ₹620, and further tighten it to ₹650 at ₹700. Consider exiting the position at ₹750.
Mphasis (₹3,010.25)
Potential breakout ahead
Since April 2023, Mphasis’ stock has been on a bullish trend. However, it has been trading within a range of ₹2,800 to ₹3,200 since August of last year. Last week, the stock rebounded from the lower end of the range, supported by the 200-day moving average at ₹2,750.
There is anticipation of a breakout above ₹3,200 with a potential target of ₹3,500 in the coming weeks. Traders can consider buying at ₹3,000 and adding more shares on a dip to ₹2,850, setting a stop-loss at ₹2,620. Adjust the stop-loss to ₹3,000 once the breakout above ₹3,200 occurs, and further move it to ₹3,170 at ₹3,300. Exit the position at ₹3,500.
