Technical Analysis: Cigniti Technologies, Kansai Nerolac Paints and Senco Gold

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Cigniti Technologies (₹1,367)

Breakout expected

The stock of Cigniti Technologies is in a long-term uptrend. However, since May, the scrip has been stuck in a range. It has been fluctuating between ₹1,300 and ₹1,380. Yet, the price action shows an upward bias. The chart shows that the stock price has gotten into a compression. Since the overall trend is positive and taking the bullish inclination into account, the probability of a surge in price is high.

Therefore, participants can initiate fresh longs now at ₹1,367 and buy more shares if the price dips to ₹1,330. Place stop-loss at ₹1,180. When the stock surpasses ₹1,400, revise the stop-loss up to ₹1,350. Tighten the stop-loss further to ₹1,550 when the price touches ₹1,600. Exit at ₹1,700.

Kansai Nerolac Paints (₹302.65)

Trend turning bullish

The downtrend in the stock of Kansai Nerolac Paints was brought to an end by the support at ₹260 in March. Since then, it has been charting a sideways trend between ₹260 and ₹290. Last week, the stock broke out of the barrier at ₹290, potentially turning the trend bullish. The breakout sustained as the stock ended last week at ₹302.65. We expect it to see a minor decline from here, possibly to ₹280.

But eventually, the scrip will start moving north and touch ₹425 in about a year. So, buy now at ₹300. Accumulate at ₹280. Place initial stop-loss at ₹240. When the price touches ₹350, revise the stop-loss to ₹325. At ₹400, exit one-third of the longs and revise the stop-loss to ₹370. Exit the remaining holdings at ₹425.

Senco Gold (₹989.60)

Testing a support

Senco Gold has been in an uptrend since its listing in July last year. It crossed the ₹1,000-mark to hit a record high of ₹1,176.8 in June this year. However, over the past month, the price declined. Nevertheless, it is now trading near a trendline support, where both the 20- and 50-day moving averages coincide. Since the broader trend is bullish and the scrip is hovering near a support, the chances for a rally from here is high.

So, one can go long on Senco Gold now at ₹990 and add longs if the price dips to ₹950. Place stop-loss at ₹910. Alter the stop-loss to ₹950 when the price rises to ₹1,040. Tighten the stop-loss further to ₹1,060 when the stock touches ₹1,120. Liquidate the longs at ₹1,150.