Technical Analysis: CG Power and Industrial Solutions, Finolex Industries and Tata Motors

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CG Power and Industrial Solutions (₹436.7)

Moves along a rising channel

The stock of CG Power and Industrial solutions is in a long-term uptrend. While there has been intermittent price corrections, the price action since June shows that the stock has been moving up along a rising channel. Last week, it fell off the upper end of this channel and closed at ₹436.7.

However, the uptrend remains intact and we anticipate a bounce from the lower end of the channel, which the stock is expected to meet at ₹425. There is another support at ₹415. On the upside, there is a potential for a rally to ₹480. Given these factors, we suggest buying the stock now at around ₹437 and add more if the price dips to ₹425. Initial stop-loss can be at ₹410. When the stock touches ₹460, alter the stop-loss to ₹440. Exit at ₹480.

Finolex Industries (₹226)

Corrective decline to end

Finolex Industries’ stock has been in an uptrend since November last year. It started the upswing on the back of the support at ₹130. The stock price doubled as it hit ₹260 a couple of weeks ago. However, since then, it has moderated and it closed at ₹226 last week. It is now hovering around the 20-day moving average.

The overall trend is bullish and we expect the stock to resume the up move again, either from the current level or after extending the downswing to ₹210. We expect the stock to retest ₹260 in the short term. Hence, go long on Finolex industries now at ₹226 and accumulate if the price dips to ₹210. Place stop-loss at ₹195 initially and then move it up to ₹230 when the stock rallies above ₹242. Exit at ₹255.

Tata Motors (₹634.2)

Uptrend likely to resume

Tata Motors’ stock has been appreciating steadily since the beginning of 2023. The bulls lifted the stock on the back of the support at ₹380. After hitting a high of ₹665 in July, the price started to moderate. However, the price action over the past two weeks indicate a resumption in the uptrend. We expect the uptrend to gain momentum henceforth and can touch ₹700 in the short term.

That said, there might be a decline in price to ₹615. Hence, traders can go long now at ₹634 and accumulate when the stock moderates to ₹615. Keep stop-loss at ₹595. When the stock surpasses the prior peak of ₹665, revise the stop-loss to ₹645. Book profits at ₹690.