Brigade Enterprises (₹1,249.6)
On a solid foundation
The stock of Brigade Companies The stock has been on a downward trend since early July. It fell from the resistance at ₹1,450. But the decline was stopped by the support at ₹1,180. There are two trend lines meeting at this level, making it a strong base. A bounce in the last two sessions, following ₹1,180, suggests the entry of new buyers. Given that the overall trend is bullish and the stock is hovering near a support, the probability of a rally is high.
A move higher from here could push the stock price beyond the previous high and take it to ₹1,600 in the coming weeks. Traders can therefore position themselves for the upside now at ₹1,250 and accumulate if the price falls to ₹1,180. Place a stop-loss at ₹1,100. When the price crosses ₹1,450, change the stop-loss to ₹1,300. When the stock reaches ₹1,550, increase the stop-loss further to ₹1,480. Liquidate long positions at ₹1,600.
Laurus Laboratories (₹448.8)
Bounces on a support
Laurus Laboratories The stock has been moving along an ascending channel since April 2023. It depreciated after facing a barrier at ₹480 earlier this month. But last week, the stock touched the lower band of the channel and bounced back sharply towards the end of the week. The price action indicates that the stock can appreciate from here. It shows potential to reach ₹600 in the near term.
Therefore, initiate long positions now at around ₹450 and accumulate if the price falls to ₹425. Maintain the stop-loss at ₹380. When the stock recovers to ₹500, revise the stop-loss upwards to ₹465. Tighten the stop-loss further to ₹520 when the price reaches ₹550. Liquidate the positions at ₹600.
Muthoot Finance (₹1,785.8)
Ready to resume rallying
Muthoot Finance The stock has been on a gradual appreciation since April last year. It established an uptrend based on the support at ₹920. Recently, the stock price fell after facing resistance at ₹1,860. But ₹1,700 offered support and stopped the decline. A trendline support is also found at this level. It is worth noting that the stock has bounced off this trendline multiple times so far this year.
We expect the stock to start the next leg of the uptrend from here, which may take it to ₹1,950 in the near term. So traders can buy at ₹1,785 and add more shares if the price falls to ₹1,720. Place a stop-loss at ₹1,640. When the stock hits ₹1,860, move the stop-loss to ₹1,760. When the price hits ₹1,900, tighten the stop-loss to ₹1,840. Book profits at ₹1,950.