Technical Analysis: Britannia Industries, Punjab National Bank and TVS Motor Company


Britannia Industries (₹5,163.2)

Rally to resume

Britannia Industries’ share price has been on a decline since the beginning of this year. It fell off ₹5,375, thus indicating that this is a resistance. But towards the end of last week, there was a bounce in price as the stock found support at the 50-day moving average around ₹4,980. The current chart set-up hints that the bulls have started to come back and the stock is likely to resume the rally.

Hence, traders can buy Britannia Industries now at ₹5,163. Add more shares if the stock softens to ₹5,050. Initial stop-loss can be at ₹4,925. When the stock rises past ₹5,230, modify the stop-loss to ₹5,100. Tighten the stop-loss further to ₹5,180 when the stock price moves above ₹5,300. Book profits at ₹5,350.

Punjab National Bank (₹105)

Sees fresh breakout

Punjab National Bank’s (PNB’s) share price has been steadily appreciating over the past seven months. However, since the beginning of 2024, the stock has been charting a sideways trend. PNB’s stock has largely been oscillating between ₹94 and ₹99. But last week, it broke out of the barrier at ₹99, opening the door for further rally.

The price action indicates a potential upswing to ₹125. So, participants can buy the stock of PNB at the current level of ₹105. Buy more shares in case the price dips to ₹98. Place stop-loss at ₹92 initially. Revise this up to ₹104 when the share price hits ₹110. Further tighten the stop-loss to ₹110 when the stock touches ₹115. Exit all the longs at ₹125.

TVS Motor Company (₹2,012)

Uptrend is intact

TVS Motor Company’s stock is in a long-term uptrend. A fortnight ago, it rallied past a hurdle at ₹2,030. The stock went on to hit a record high of ₹2,104 last week. But then, the prices moderated, and it closed at ₹2,012 last week. Nevertheless, the uptrend is intact and the chart shows potential for a rally to ₹2,200 in the near term. But the corrective decline could extend to ₹1,970 from here.

Therefore, one can buy shares of TVS Motor now at ₹2,012 and accumulate if the price dips to ₹1,970. Place initial stop-loss at ₹1,920. Once the stock surpasses ₹2,120 on the upside, alter the stop-loss to ₹2,060. Raise the stop-loss further to ₹2,125 when the share price goes beyond ₹2,180. Liquidate the longs at ₹2,200.

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