Technical Analysis: Godfrey Phillips India, Gujarat Gas and HCL Technologies

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Godfrey Phillips India (₹2,366.3)

Uptrend is intact

Godfrey Phillips’ stock was tracing a horizontal trend in the second half of last year. It was oscillating between ₹2,020 and ₹2,200. But a fortnight ago, the stock broke out of the range and hit a record high of ₹2,646.75 on January 31. What followed was a moderation in price where Godfrey Phillips closed at ₹2,366.30 last week. Yet, the uptrend remains valid. We expect the stock to see a recovery and appreciate to ₹3,000 over the medium term.

So, traders can buy now at around ₹2,366. Accumulate in case the price moderates further to ₹2,220. Keep initial stop-loss at ₹1,950. Raise it to ₹2,500 when the scrip touches ₹2,650. Tighten the stop-loss further to ₹2,700 when price reaches ₹2,850. Book profits at ₹3,000.

Gujarat Gas (₹582.3)

Outlook turns bullish

The stock of Gujarat Gas bounced off the support at ₹400 in October last year. While it rallied in the subsequent months, the upswing intensified when the calendar turned 2024. Importantly, the stock appreciated above a critical resistance at ₹525 nearly a month ago. This has turned the outlook bullish. We anticipate this stock to extend the upside in the near future. It can potentially hit ₹750. So, one can buy shares of Gujarat Gas now at around ₹580.

Also, if there is a dip in price, accumulate at ₹560 as well as ₹540. Initial stop-loss can be at ₹480. Modify the stop-loss to ₹600 if the stock rises to ₹650. When the price hits ₹700, exit half of the longs. For the remaining holdings, raise the stop-loss to ₹660. Fully exit at ₹750.

HCL Technologies (₹1,632)

Bull flag confirmation

HCL Technologies’ stock has been in a steady uptrend since September last year. It established a rally on the back of the support at ₹1,150. But in mid-January this year, it lost momentum and entered a consolidation phase. Last week, it broke out of the range of ₹1,520-1,580, a bullish sign. The price action now resembles a bull flag pattern which hints at a rally from the current level. HCL Technologies’ share price could move up to ₹1,800 in the near term.

Hence, one can go long now at ₹1,630 and add more longs if the price softens to ₹1,580. Place stop-loss at ₹1,500 initially. When the price surpasses ₹1,700, alter the stop-loss to ₹1,650. Move the stop-loss further up to ₹1,680 when the stock hits ₹1,750. Liquidate at ₹1,800.