Technical Analysis: Global Health, Lemon Tree Hotels, NCC

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Global Health (₹1,114)

Set to breakout

Bears maintained dominance in the stock of Global Health between June and early October. Consequently, the price slumped from ₹1,380 to mark a ten-month low of ₹935.5 in October. But since hitting the low, there has been a loss of downward momentum. Moreover, the chart shows that the stock is preparing for the breakout of ₹1,120.

We expect the scrip to surpass ₹1,120 and rally to ₹1,450 in a year. So, buy at ₹1,114 and accumulate if the price dips to ₹1,020. Place stop-loss at ₹930. When the price hits ₹1,300, revise the stop-loss to ₹1,200. When the stock touches ₹1,380, move the stop-loss further up to ₹1,300. Book profits at ₹1,450.

Lemon Tree Hotels (₹124.80)

Sees good buying interest

The stock of Lemon Tree Hotels has been on a decline since August as it faced a barrier at ₹152. But the daily chart shows that the price band of ₹112-115 has stopped the decline beyond these levels thrice over the last three months. There seems to be good buying interest whenever the price dips to these levels. Recently, the stock bounced off ₹112.

The prevailing price action hints at a fresh leg of rally from the current level. Participants can go long at ₹124 and buy more shares if the price softens to ₹115. When the stock appreciates to ₹135, modify the stop-loss to ₹120. At ₹145, exit two-thirds of the total longs and maintain stop-loss at ₹135 for the remaining. Exit them at ₹150.

NCC (₹284)

Support holding well

NCC’s stock witnessed a gradual decline between August and October. But the price action since mid-October has started showing signs of the downtrend coming to an end. The support at ₹270 appears to hold well. Notably, the 50-week moving average coincides with ₹270, making it a strong base. Bulls can make use of this and are expected to push the price higher.

The stock is likely to retest the resistance at ₹350 in the next few months. Hence, traders can buy at ₹284 and add more longs at ₹270. Keep a stop-loss at ₹255. When the price rises to ₹320, alter the stop-loss to ₹280. Trail the stop-loss to ₹310 when the stock hits ₹335. Liquidate the longs at ₹350.