Technical Analysis: Intellect Design Arena, Mahanagar Gas Ltd and Tata Chemicals

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Intellect Design Arena (₹733)

Fresh breakout seen

Intellect Design Arena’s share price movement remained sluggish for the whole of August. It was oscillating within ₹670 and ₹715. But it surpassed the resistance at ₹715 last week, which is likely to attract fresh buying in the forthcoming sessions. Such a pent-up demand for this stock can lift the price upwards. The weekly chart of Intellect Design Arena reflects a potential for a rally to ₹800.

So, we suggest going long on the stock of Intellect Design Arena now at ₹733 and buy more shares in case the price softens to ₹715. Keep stop-loss at ₹690 initially; modify it to ₹745 once the share price goes above ₹775. Trail the stop-loss to ₹760 when the stock touches ₹785. Exit at ₹800 since there could be a decline off this level.

MGL (₹1,030.2)

Bounces off a support

Mahanagar Gas Ltd (MGL) initiated a new upward move last June from the ₹700 base, steadily gaining ground. In August, a resistance at ₹1,120 caused a temporary dip, mitigated by a trendline support at ₹975, prompting a rebound. The bullish trend remains intact, with the recent decline considered a corrective one.

We expect MGL’s share price to appreciate and retest the resistance at ₹1,120. Buy MGL shares now near ₹1,030 and accumulate during price dips to ₹1,000. Set an initial stop-loss at ₹960, adjusting it to ₹1,030 when the price reaches ₹1,070, and then further tightening it to ₹1,070 upon reaching ₹1,100. Liquidate the longs at ₹1,120.

Tata Chemicals (₹1,070.3)

Indicates potential uptick

Tata Chemicals’ share price has been giving a lacklustre performance since the beginning of 2023. It was largely fluctuating within ₹940 and ₹1,025. Last week, it crossed over the hurdle at ₹1,025 and this can spark fresh investor interest, possibly driving the price higher. While there is a minor impediment for the stock at ₹1,140, we expect the bulls to overcome this and push the price up to ₹1,180.

Therefore, participants can buy the stock at the current level of ₹1,070. Be prepared to buy more in case the price dips to ₹1,040. Place stop-loss at ₹990 at the time of initiating the trade; revise it up to ₹1,100 when the stock touches ₹1,140. Further tighten the stop-loss to ₹1,130 if the stock price rises to ₹1,160. Book profits at ₹1,180.