Technical Analysis: CARE Ratings, Grasim Industries and SBI Life Insurance Company

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CARE Ratings (₹1,094.5)

Set to resume the uptrend

CARE Ratings’ stock, since July 2022, has been in an uptrend. The rally began on the back of the base of ₹400. In early February this year, the stock crossed over the psychological ₹1,000-mark with good volumes. This is an indication that the uptrend is intact. Hence, the moderation in price over the past two weeks is likely to be a corrective one.

We anticipate a recovery soon. The upswing can lift CARE Ratings’ share price to ₹1,300. Therefore, one can buy the stock now at ₹1,095 and add more longs if the price dips to ₹1,020. Place initial stop-loss at ₹960. Alter this upward to ₹1,090, once the share price reaches ₹1,160. Revise the stop-loss further up if the stock goes to ₹1,220. Book profits at ₹1,280.

Grasim Industries (₹2,104.4)

In the cusp of a rally

Grasim Industries’ stock price has been appreciating steadily since March 2023. Back then, it found support at ₹1,540 where it established an upswing. Nevertheless, after reaching ₹2,140 towards the end of last year, the rally lost steam. Although there was no price decline, the correction happened through sideways movement. That said, the price band of ₹2,020-2,050 appears to be a good demand zone.

We expect the stock to regain traction and rise to ₹2,300 in the short run. So, buy now at around ₹2,100 and accumulate on a dip to ₹2,055. Keep stop-loss at ₹2,000 initially. Revise this to ₹2,120 when the price hits ₹2,200. Tighten the stop-loss further to ₹2,180 when the stock touches ₹2,250. Exit at ₹2,300.

SBI Life Insurance Company (₹1,508.5)

Breaks out of a range

SBI Life Insurance Company’s share price was largely moving in a range of ₹1,380 and ₹1,490 since December last year. But last week, it broke out of the range and the chart hints that this stock has positioned itself for further upside. We see a potential to touch ₹1,700 in the near term. So, one can go long on SBI Life at the current level of around ₹1,510 and buy more shares in case the price dips to ₹1,450.

Place initial stop-loss at ₹1,380. When the share price surpasses a potential resistance at ₹1,600, revise the stop-loss to ₹1,550. Further, when the stock touches ₹1,650, move the stop-loss further up to ₹1,600. Liquidate all the longs at ₹1,700. There could be a price correction after the stock touches ₹1,700.