Technical Analysis: Grasim Industries, Indian Oil Corporation and InterGlobe Aviation

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Grasim Industries (₹1,900.5)

Uptrend likely to resume

Grasim Industries’ stock hit a fresh all-time high of ₹1,988.75 last month. However, the price has fallen since then and last week, the stock closed at ₹1,900.5. But the overall bull trend remains steady and the recent fall in price is likely to be a corrective fall. Going ahead, the downswing might extend to ₹1,860 but post that, the chances of the uptrend resuming are high.

The chart indicates that the stock could surpass the prior high and rise to ₹2,100 in the near term. Considering the above factors, one can buy shares of Grasim Industries now at ₹1,900 and accumulate if the price dips to ₹1,860. Place stop-loss at ₹1,800. When the stock hits ₹2,020, alter the stop-loss to ₹1,920. Liquidate at ₹2,080.

Indian Oil Corporation (₹89.8)

Recovery on the cards

Indian Oil Corporation’s stock, by taking support at ₹65 in October last year, established an uptrend. It has been rallying since then and it marked a 52-week high of ₹101.44 in July this year. However, the price has been moderating for nearly three months and last week it closed at ₹89.8. Nevertheless, the price band of ₹88-90 is a solid support against which the bulls are expected to regain traction.

We expect a recovery from the current level and Indian Oil Corporation’s share price can hit ₹100 in the short term. Hence, we recommend buying the stock now at around ₹90; stop-loss at ₹86. When the stock crosses ₹93, alter the stop-loss to ₹90. Further, tighten the stop-loss to ₹92 when the price touches ₹95. Exit at ₹98.

InterGlobe Aviation (₹2,535)

Bullish reversal seen

InterGlobe Aviation’s share price has been falling over the past three months. It fell off a resistance at ₹2,730 and it marked a three-month low of ₹2,333.4 recently. But last week, the stock saw a rebound in price. A weekly close above ₹2,500 is a strong indication that InterGlobe Aviation’s stock has turned the short-term outlook bullish.

The probability of the stock retesting the barrier at ₹2,730 is high. But there might be a minor correction to ₹2,470 before surpassing the ₹2,600-mark. Given the above factors, go long at the current level of ₹2,535 and accumulate if the price softens to ₹2,470. Keep stop-loss at ₹2,380 initially and revise it up to ₹2,580 when the stock touches ₹2,650. Book profits at ₹2,730.