Technical Analysis: Balkrishna Industries, ICICI Lombard General Insurance and Indus Towers
Balkrishna Industries (₹2,704.40)
Strong support ahead
The stock of Balkrishna Industries has been gradually depreciating since August last year. But the price action indicates that the bears have lost traction in recent weeks. Going ahead, there is a possibility of further drop in price. However, the downside can be limited as the stock has a considerable support at ₹2,500.
We expect the stock to start appreciating from the current level or after a dip to ₹2,500. So, one can go long at ₹2,700 and buy more shares if the price softens to ₹2,500. Stop-loss can be at ₹2,350. Trail the stop-loss to ₹2,850 when the stock hits ₹3,000. Raise the stop-loss to ₹2,980 when the stock touches ₹3,150. Book profits at ₹3,250.
ICICI Lombard General Insurance (₹1,948.75)
Signs of a bullish reversal
The stock of ICICI Lombard General Insurance depreciated between October and December last year. After it reached the ₹1,750-1,800 price band, a support, the downtrend lost momentum. Since the beginning of this year, the scrip has been on the rise. Even though there is a resistance ahead at ₹2,000, we expect it to be invalidated.
But before that, the price could moderate to ₹1,875. An eventual breakout of ₹2,000 can lift the stock to ₹2,250. Therefore, one can go long at ₹1,945 and buy more shares at ₹1,875. Place stop-loss at ₹1,780. Raise this to ₹1,980 when the price hits ₹2,100. Move the stop-loss up to ₹2,080 when the stock touches ₹2,180. Exit at ₹2,250.
Indus Towers (₹363)
Indications of a breakout
The stock of Indus Towers, between September and November last year, saw a decline in price. But over the past two months, the stock has been oscillating between ₹316 and ₹370. Last week’s rally has brought in good bullish momentum. We expect this to lift the stock above the resistance at ₹370 and take it to ₹450 in the coming months.
But before the breakout of ₹370, the price might moderate to ₹340. Given these factors, we suggest buying the stock of Indus Towers now at ₹363 and accumulate at ₹340. Keep initial stop-loss at ₹310. When the stock touches ₹400, revise the stop-loss to ₹370. Raise the stop-loss to ₹395 when the price hits ₹425. Liquidate the longs at ₹450.
