Hindustan Unilever (₹2,368.90)
At a long-term support
The stock of Hindustan Unilever, since September last year, has been in a steady decline. In the second half of December, it formed a morning star pattern on the weekly chart, hinting at bullish reversal. However, the price fell further. That said, last week, the stock rebounded from a long-term trendline support at ₹2,280.
Also, the price has now moved above the base of morning star pattern. So, from here, the probability of a rally is high. Buy at ₹2,365 and at ₹2,280. Stop-loss can be ₹2,000. When the price hits ₹2,550, revise the stop-loss to ₹2,400. On a rally to ₹2,750, exit one-third of the longs and adjust the stop-loss to ₹2,600. At ₹2,900, move the stop-loss further up to ₹2,800. Exit at ₹3,000.
Minda Corporation (₹567.85)
Trend turns bullish
The stock of Minda Corporation was largely charting a sideways trend between November last year and mid-January this year. It was oscillating between ₹480 and ₹550. About two weeks ago, the scrip broke out of ₹550, potentially turning the trend bullish. There has been a moderation in price in the recent sessions and this could extend to ₹520.
But then, it is highly likely that it will start rallying after the dip. The stock can appreciate to ₹750. Therefore, traders can go long at ₹565 and accumulate at ₹520. Place stop-loss at ₹460. When the stock rises above ₹620, revise the stop-loss to ₹570. Tighten the stop-loss to ₹650 when the price hits ₹700. Liquidate the longs at ₹750.
Mphasis (₹3,010.25)
Likely to see a breakout
The trend has been bullish since April 2023 for the stock of Mphasis. Nevertheless, since August last year, it was largely moving in a broad price band between ₹2,800 and ₹3,200. Last week, it rebounded from the range bottom. Notably, the 200-day moving average also lies at ₹2,750 and hence, the price region of ₹2,750-2,800 is a strong base.
From the current level, we expect the stock to rise and break out of ₹3,200 and then move up to ₹3,500 in the coming weeks. Hence, go long at ₹3,000 and buy more shares if the price dips to ₹2,850. Keep stop-loss at ₹2,620. On a breakout of ₹3,200, alter the stop-loss to ₹3,000. When the stock hits ₹3,300, revise the stop-loss to ₹3,170. Exit at ₹3,500.