Technical Analysis: Sundaram Finance, Laurus Labs and Insecticides India

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You have bought Sundaram Finance shares at a price of INR 1,831. What are the expectations and target for this stock? Where should I keep my stop loss?

Suhas Vaidya, Pune

Sundaram Finance (INR 2,609.50): The outlook is optimistic for Sundaram Finance. The stock resumed its upward trend after a prolonged consolidation between October 2022 and April this year. Throughout this consolidation phase, the 21-month moving average (MMA) provided good support for the stock. This support is now at $2,196. The moving average cross on the weekly chart is strengthening the bullish case. It indicates that the downside could be limited in the event of a mean decline.

Sundaram Finance share price could rise further from here and target ₹3,450-3,500 over the next 16 months. Your entry level is fine. It is now important for you to protect your profits. Keep the stop loss at $2,380. Move your stop loss up to $2,530 when the price touches $2,820. Revise the stop loss higher to $2,950 when Sundaram Finance share price touches $3,280. The shares end at $3,430.

What is the outlook for Laurus Laboratories? You bought this share at about Rs 414. Where should I accumulate and exit?

Pradeep Kabra

Laurus Labs (£366.50): The arrow shows a sign of a shift. Larus Labs has been on a strong downtrend since August 2021. This fall made a low of ₹279.65 in April this year. Stock has picked up nicely from there. The price reversal occurred from just below the 61.8 percent Fibonacci retracement support level at INR 315. Chances look high for Laurus Labs share price to move to $450-470 over the next couple of quarters.

Strong support is now found in the area of ​​₹320-315. The 21-week moving average (WMA) as well as the Fibonacci retracement support is set in this area. This makes it a strong support area. As such, intermediate declines are likely to be limited to the $320-315 support area. You can accumulate at the current levels and at $330. Keep the stop loss at INR280. Move your stop loss order to $360 when the stock rises to $420. Move your stop loss order as high as INR 410 when the price touches INR 440. Get out of stock at 460 SAR.

I Bought India shares in Pesticides at Rs 719. Now it is trading around $440. Can I continue to hold and accumulate at the current levels?

Malarvasajan

Indian Insecticides (442.55 INR): After seeing sharp declines in January and February of this year, the stock has been consolidating sideways since March. This consolidation is happening above the 200 week moving average which is currently at $434. Below that is trend line support at $430. This consolidation indicates a bottom formation. However, it has not been confirmed yet. Resistance is at 515 rupees then 540 rupees. A rally to $515 from here would indicate a double bottom formation on the chart. It will strengthen the argument for reversal. Subsequent rise above $540 will confirm trend reversal.

In this case, the share price of Insecticides India could rise towards $850 over the next two years. This opinion will be invalidated if the share price falls below $400. In this case, the stock could drop to $385 initially and then to $330 at the end. We would prefer the stock to hold above $430 and see a reversal. So you can accumulate at current levels. Keep the stop loss at INR 380. Move the stop loss order to $510 once the stock moves up to $560. Move the stop loss order to $610 when the stock price of Insecticide India reaches $730. Exit the stock at $810.

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