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Apollo Hospitals Enterprise (₹6,185.50)
Signals bullish reversal
The stock of Apollo Hospitals Enterprise depreciated between mid-February and May. But since the beginning of June, the scrip has been moving up. Importantly, it crossed over both 20- and 50-day moving averages and breached a trendline resistance. In addition, the daily chart shows the confirmation of a double bottom, a pattern signalling bullish reversal.
These factors have improved the odds for a rally from the current level. Therefore, participants can consider buying shares of Apollo Hospitals Enterprise now at around ₹6,186. Accumulate if the price moderates to ₹6,000. Place stop-loss at ₹5,650. When the stock surpasses ₹6,520, alter the stop-loss to ₹6,400. Raise the stop-loss further to ₹6,650 when the stock touches ₹6,800. Exit at ₹7,000.
IGL (₹503.85)
Set to establish an uptrend
The stock of Indraprastha Gas Ltd (IGL) has been gradually moving up since November last year. Back then, it found support at ₹380, on the back of which the scrip started to rally. Last week, it managed to close above the ₹500-mark. Although this cannot be seen as a decisive break, there are other positive signs supporting a potential upswing from here.
The long-term chart shows formation of higher highs and higher lows. The RSI and MACD on the weekly chart appear optimistic. So, one can buy the stock of IGL at ₹500. Add longs if the price drops to ₹450. Place stop-loss at ₹400. When the stock rises to ₹580, alter the stop-loss to ₹545. Tighten the stop-loss to ₹590 when the price touches ₹620. Exit at ₹650.
Reliance Industries (₹3,131.85)
Sees fresh breakout
Reliance Industries’ stock has been in a consolidation phase since February. It was largely oscillating within ₹2,800 and ₹3,000. But last week, the stock broke out of this price band. Considering this and that the broader trend has been bullish, the probability of the stock appreciating further from here is high. We expect it to touch ₹3,800 over the medium term.
So, traders can buy the stock of Reliance Industries now around ₹3,132. Accumulate if the price dips to ₹2,920 – its 20-day moving average. Place stop-loss at ₹2,700. When the price rises above ₹3,400, raise the stop-loss to ₹3,250. Tighten the stop-loss further to ₹3,450 when the stock hits ₹3,600. On a rally to ₹3,700, move the stop-loss to ₹3,580. Exit at ₹3,800.
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