Astra microwave products (€833.10)
Cracks an important resistance
Astra Microwave Products stock hit a higher low last month. As the price rose over the past few weeks, it surpassed both the 50 and 200 day moving averages as well as the resistance at ₹820. The prevailing price action is showing strong signs of a rally from the current level, pushing the price up in the coming months could possibly be increased to ₹1,000.
So go long at ₹830 and buy more shares if the price falls to ₹780. Keep the initial stop-loss at ₹710. When the scrip crosses ₹880, change the stop-loss to ₹780. Increase the stop-loss further up to ₹880 when the price reaches ₹950. Liquidate the longs at ₹1,000 as a corrective decline in this psychological level may occur.
Dhanuka Agritech (€ 1,613.20)
Upward trend reversal
Dhanuka Agritech shares fell in value between August and October. However, it found support at ₹1,350 in late October, against which it has recovered in recent weeks. While it is now facing a roadblock of ₹1,660, we expect the stock to break through this eventually. The breakout of ₹1,660 opens the door for a rise to ₹2,000.
But there is a chance that the price will moderate to ₹1,500 before the breakout of ₹1,660 takes place. Participants can buy the shares now and accumulate if there is a drop to ₹1,500. Place a stop-loss at ₹1,330. When the price reaches ₹1,900, change the stop-loss to ₹1,770. On a rally to ₹1,950, change the stop-loss to ₹1,880. Exit at ₹2000.
Zydus Wellness (€ 2,016.05)
Fixes inverted head and shoulder
Zydus Wellness stock turned bullish in late October after finding support at ₹1,800. The upward movement since then has been along an ascending channel. In early December, the stock broke out of a resistance of ₹2,000, which also happened to be the neckline of an inverse head and shoulders pattern.
The confirmation of this chart setup has further strengthened the bullish trend reversal. So you can buy at ₹2,015 and accumulate when the price drops to ₹1,900. Keep the initial stop-loss at ₹1,750. When the price reaches ₹2,200, change the stop-loss to ₹2,050. When the price rises to ₹2,350, reduce the stop-loss to ₹2,150. Book profit from ₹2500.
