Technical Analysis: Cochin Shipyard, Hindustan Aeronautics and Power Finance Corporation

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Cochin Shipyard (₹1,680.35)

Rallies past a barrier

The price of the stock of Cochin Shipyard saw a steady decline in price between early July and mid-November. However, before few weeks, it found a support at ₹1,250. On the back of this, the stock formed a morning star candlestick pattern. This chart set up indicates a bullish reversal and so, the probability of a rally from the current level is high.

Over the medium-term, we anticipate the scrip to rally towards ₹2,850. Therefore, one can buy the stock at ₹ 1,680 and accumulate at ₹1,450. Place stop-loss at ₹1,230 at first. When the stock hits ₹2,100, trail the stop-loss to ₹1,900. When the upside stretches further to ₹2,500, tighten the stop-loss to ₹2,300. Exit at ₹2,850.

Hindustan Aeronautics (₹4,562.65)

Bulls gain traction

The stock of Hindustan Aeronautics Limited (HAL), since early July, has been in a downtrend. But three weeks back, the stock found a support at ₹4,000, where the 50-day moving average (DMA) coincided. It rebounded on the back of this and surpassed an important level of ₹4,500, its 20-DMA, last week, turning the outlook positive.

We expect it to retest the resistance at ₹5,600 in the near-term. Go long now at ₹4,560 and buy more shares if the price softens to ₹4,300. Keep stop-loss at ₹3,850. When the price rises to ₹5,000, alter the stop-loss to ₹4,600. Move the stop-loss further up to ₹5,000 when the stock hits ₹5,300. Book profits at ₹5,600.

Power Finance Corporation (₹513.75)

Trend turning positive

The stock of Power Finance Corporation (PFC) saw its price drop from ₹565 to ₹430 between early September and mid-October. But then the bears lost traction, leading to a sideways movement in price. Over the past three weeks, the stock has been gaining good positive momentum.

Consequently, it moved past the hurdle at ₹475, indicating that the trend has turned bullish. We expect the scrip to appreciate to ₹650 over the next few months. Buy at ₹510 and accumulate if the price dips to ₹475. Place stop-loss at ₹425. When the stock touches ₹565, revise the stop-loss to ₹520. Tighten the stop-loss to ₹590 when the price hits ₹620. Liquidate the longs at ₹650.