Technical Analysis: APL Apollo Tubes, Atul and Torrent Pharmaceuticals

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APL Apollo Tubes (₹1,543.8)

Hovering around a base

APL Apollo Tubes’ stock has been charting a sideways trend over the last two months. The boundaries of the range are ₹1,515 and ₹1,740. By closing at ₹1,543.8 last Friday, the stock is now near the range bottom. Since the overall trend is bullish, the chances of a rally from here are high. It could retest ₹1,740.

Even if the price slips below ₹1,515, the stock has another support at ₹1,470. A decline below ₹1,470 is less likely. Therefore, one can buy the stock now at around ₹1,544. Accumulate if the price dips to ₹1,490. Place stop-loss at ₹1,425 initially. When the stock moves above ₹1,655, alter the stop-loss to ₹1,590. Tighten the stop-loss further to ₹1,650 when the scrip touches ₹1,700. Liquidate the longs at ₹1,730.

Atul (₹6,450.50)

Likely to resume downtrend

Atul’s stock has been in a steady downtrend since August last year. It began the decline after facing resistance at ₹9,500. A fortnight ago, the scrip slipped below a support at ₹6,550, hinting at the start of the next downswing. But there could be a minor rally to ₹6,600 this week. Post this, Atul’s stock price could resume the fall and touch ₹5,850 in the near term.

Hence, traders can short Atul at the current level of ₹6,450. Add shorts if the price rises to ₹6,600. Place stop-loss at ₹6,785 initially. Move the stop-loss down to ₹6,325 when the stock declines to ₹6,125. Tighten the stop-loss further to ₹6,100 when the price drops to ₹6,050. Book profits at ₹5,875.

Torrent Pharmaceuticals (₹1,959.95)

Confirms ascending triangle

Torrent Pharmaceuticals’ stock has been facing stiff resistance at ₹1,950 since early September. Hence, the resumption in the uptrend appeared to have come to a halt. However, on Friday, the stock broke out of ₹1,950, giving fresh hopes for the bulls. Notably, the breakout has confirmed an ascending triangle pattern, indicating further upside.

The prevailing price action suggests that the stock could moderate to ₹1,930 from the current level and then resume the rally. There is a potential for Torrent Pharmaceuticals’ stock price to appreciate to ₹2,070. So, go long now at ₹1,960. Buy more if the price softens to ₹1,935. Stop-loss can be at ₹1900. Modify the stop-loss to ₹1,950 when the stock rises to ₹2,010. Exit at ₹2,070.