Abbott India (20,698.9)
Records new high
Abbott India stock climbed 3.5 percent, outperforming volume, breaking key short-term resistance at 20,000 yen on Thursday. With this rally, the stock has resumed its primary uptrend. The stock is trending up across all time frames. After a corrective decline, the stock found support at 14,000 yen this February and is in a medium-term uptrend. It broke a long-term hurdle at 18,000 yen in early August and continued its upward trend. But the recent upward move faces an important barrier at 21,000 yen. The closest resistance is at ₹ 21,500 and ₹ 22,000. Both the daily and weekly relative strength indices are in the overbought territory, suggesting a near-term correction is likely. Investors can book a partial profit at this point and stay invested with a stop loss at 19,800 yen. The supports are at 20,000 and 19,000.
Ashok Leyland (₹ 125.3)
Gaining bullish momentum
Ashok Leyland’s stock found support around 116 in late August, halting the downtrend that started from the 143.3 high in early August. Triggered by a positive divergence in the daily relative strength index, the stock changed direction and trended up. After pausing at around ₹ 123, it broke the resistance at ₹ 124 and gained nearly 3 percent on Thursday with above-average volume. It also closed above the 21-day moving average. Both the daily and weekly RSI are moving towards the upside. Immediate resistance is ₹ 128. Another rally may bring the stock to 132 and ₹ 137.5. Resistances are ₹ 140 and ₹ 143. However, if the stock falls below 120 yen, it can retest the 116 yen support. A drop below this can temporarily drag it to 112.5 or ₹ 110.
Indus Towers (₹ 242.3)
Boosts bullish momentum
The share of Indus Towers gained 7.4 percent in the past week, accompanied by an above-average volume. This rally added to the bullish momentum. In early August, the stock flipped around ₹ 194 and was in a short-term uptrend. During the uptrend, the stock finally passed a major hurdle at 230 last week. The stock will now test resistance at ₹ 244. A break above this level will fuel the bullish move, bringing the stock to ₹ 260 in the coming weeks. A major breakthrough in the medium-term hurdle at ₹ 260 will fuel the upside, pushing the stock to ₹ 270 and then to ₹ 280. However, a break below the immediate base level of 220 yen can push the stock to 210 yen and then to 200 yen. Traders can buy the stock at the current level with a stop loss at 235 for a target of ₹ 260.
Nestlé India (20,439)
Reach new heights
Nestle India’s stock was volatile last week. After a decline of 2.6 percent on Wednesday, it recovered and increased by 3 percent on Thursday. However, the stock’s short-term uptrend is showing signs of weakness as the daily relative strength index shows negative divergence. The stock is now testing the resistance at ₹ 20,500. A rally above this level might be short-lived and the stock can test the next resistance at 21,000 yen. On the flip side, a fall below the immediate support at 20,000 yen can bring back selling pressure, pushing the stock to 19,470 yen and then 19,000 yen for the short term. A conclusive break below the vital base level of 19,000 yen will change the short-term uptrend, dragging the stock to 18,300 yen and then 18,000 yen. At this point, investors can consider booking a partial profit.
Zee Entertainment Enterprises (₹ 183)
Return higher from a key base
The stock of Zee Entertainment Enterprises (ZEEL) hit a 52-week low at 166.8 yen in late August and found support in the band between 166 yen and 170 yen. The downtrend, which started from the June high of 218 yen, was halted in late August. Subsequently, triggered by a positive divergence in the daily relative strength index, the stock reversed direction and has been on a short-term upward move for the past two weeks. On Thursday, the stock was up 3 percent, beating immediate resistance at ₹ 180 and the 21-day moving average. In addition, the daily RSI is charting higher in the neutral zone and the weekly RSI has stepped out of the bearish zone into the neutral zone. The stock can go up to 190 and then up to ₹ 200 for a short period of time. Traders can buy with a stop loss at ₹ 174.