Birlasoft (₹386.15)
At a long-term support
Birlasoft’s stock has been falling since February last year. Over the past few weeks, the price action shows that the selling has been strong resulting in the breach of support at ₹520 and ₹480. However, there is a crucial long-term support ahead at ₹380 where a rising trendline lies.
While this may not help in reversing the trend upwards, the stock can see a short-term rally from the current level. The price might go up to ₹480. So, traders can go long at ₹380 and place a stop-loss at ₹340. When the price rises to ₹450, revise the stop-loss to ₹420. Liquidate the longs at ₹480. Note that this is a high risk trade and so, risk-averse traders can refrain from initiating this position.
PI Industries (₹3,290.20)
Set to resume downtrend
The stock of PI Industries has been in a downtrend since September last year. After hitting a 52-week low of ₹2,952.05 a fortnight ago, the price has now risen to ₹3,290. However, the broader trend remains bearish and there is a strong barrier at ₹3,400. The recent upswing is likely to be a corrective rally and the stock can start depreciating again.
While ₹2,950 is a potential support, we expect the leg of potential downtrend from the current level to extend to ₹2,800. Traders can short PI Industries at ₹3,290 with a stop-loss at ₹3,475. When the price falls to ₹3,050, revise the stop-loss to ₹3,250. Tighten the stop-loss further to ₹3,050 when the stock drops to ₹2,900. Exit at ₹2,800.
Solar Industries India (₹10,063.80)
Outlook turns positive
The stock of Solar Industries India has been gradually depreciating since July last year. But since early February the price has seen a steady rise. The chart shows that the stock has found support at ₹8,500. The price is now above both 20- and 50-day moving averages and the prevailing chart set up shows that the stock possesses the momentum to overcome the nearest hurdle at ₹10,300. It can rally towards ₹12,400 over the next few weeks.
So, participants can buy the stock at ₹10,000 and ₹9,350. Place stop-loss at ₹8,450. When the stock rises to ₹11,250, alter the stop-loss to ₹9,800. Move the stop-loss further up to ₹10,800 when the stock touches ₹11,800. Book profits at ₹12,400.
