Bajaj Finserv (₹1,840.45)
Strong uptrend
Bajaj Finserv’s stock sprang back on the back of the support at ₹1,560 in December. It has been moving up even though the broader market has been facing considerable selling pressure, highlighting the inherent strength of the uptrend. The prevailing price action indicates possibility of further appreciation. We anticipate an upswing to ₹2,200 over the next few months.
So, participants can buy shares of Bajaj Finserv now at ₹1,840, and accumulate if the price dips to ₹1,720. Stop-loss can be at ₹1,550. When the stock rises to ₹2,000, modify the stop-loss to ₹1,880. At ₹2,100, exit half of the holdings. Then maintain a stop-loss at ₹2,000 for the remaining shares. Exit them at ₹2,200.
Redington (₹245.25)
Good upward momentum
Redington’s stock broke out of a key resistance at ₹225 a couple of weeks ago. It extended the rally last week too, indicating a strong upward momentum. The probability for the stock to post more gains is high. Nevertheless, since it had rallied sharply, there could be a minor dip in price, possibly to ₹230, before the next upswing.
But note that broader bull trend will remain true so as long as the support at ₹220 holds. Therefore, we suggest going long now at ₹245 and buying more shares if the price softens to ₹230. Place a stop-loss at ₹210. When the stock surpasses ₹260, trail the stop-loss to ₹245. When the price hits ₹270, revise the stop-loss up to ₹260. Liquidate the longs at ₹280.
Tata Steel (₹134.40)
Corrective rally to end
Tata Steel’s stock has been in a steady downtrend since July last year after facing a resistance at ₹185. By mid-January, it found support at ₹125 and has been in an upward trajectory since then. However, this upswing is likely to be a corrective rally. The price region of ₹138-140 is a supply zone and the 50-day moving average resistance lies within these levels.
Therefore, odds are stacked in favour of bears. Only a breakout of ₹140 can turn the tides in favour of the bulls. As it stands, the chances are high for the price to drop to ₹115. So, traders can initiate short positions on Tata Steel at ₹136. Keep a stop-loss at ₹143. When the price falls to ₹122, tighten the stop-loss to ₹130. Book profits at ₹115.