Technical Analysis: KEC International, Metropolis Healthcare and State Bank of India

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KEC International (₹615.5)

Bulls coming back

KEC International’s stock has been on an uptrend since 2020. Its latest leg began in June last year after finding support at ₹360. But recently there was a price correction after the stock made a fresh high of ₹739 in September this year. The decline was arrested by the support at ₹570, against which the stock has seen a rebound.

This is a sign of the uptrend resuming after witnessing a corrective fall. We anticipate the stock to gain momentum in the forthcoming sessions which can take the price to ₹800. Go long now at around ₹616 and accumulate if the price softens to ₹600. Keep stop-loss at ₹530 initially. Revise the stop-loss to ₹620 when the stock touches ₹650. Tighten the stop-loss further to ₹670 when the price hits ₹700. Exit at ₹780.

Metropolis Healthcare (₹1,616.4)

Trend reversal seen

Metropolis Healthcare’s stock formed a base between ₹1,200 and ₹1,360 in the first half of this year after witnessing a sharp decline in 2022. In June this year, the stock started to rally. After marking a 52-week high of ₹1,719.95 a fortnight ago, the stock has moderated to the current level of ₹1,616.40. Notably, ₹1,560-1,600 is a good support band.

We expect this region to help the bulls regain traction and resume another leg of rally. This can potentially lift the stock to ₹1,780. So, buy the stock now at around ₹1,616 and on a dip to ₹1,580. Keep initial stop-loss at ₹1,520. When the price rises past ₹1,710, revise the stop-loss up to ₹1,670. Book profits at ₹1,750.

State Bank of India (₹648.4)

Confirms ascending triangle

State Bank of India’s (SBI) stock broke out of a resistance at ₹620 last week to close at a record high. This breakout has confirmed an ascending triangle, a trend continuation pattern. Since the trend is bullish, the indication is for further rally. SBI share price is likely to hit ₹750 in the near term, according to this chart pattern.

But there could be a minor correction in price, possibly to ₹630, before surpassing ₹700. Therefore, buy the stock of SBI now at around ₹648 and add more shares if the price dips to ₹630. Place stop-loss at ₹590 initially. When the stock rallies past ₹700, modify the stop-loss to ₹675. Tighten the stop-loss further to ₹700 when the price touches ₹720. Liquidate the longs at ₹740.