Breakout Candidates - 25-Oct-2011

Hindustan Unilever

Hindustan Unilever - 11-Oct-2011 - In this corresponding post I had identified a pattern that might occur if 320 on closing basis was broken. But as they say markets are supreme & patterns can get invalidated. The pattern did not become active as the stock price dint close below 320 in these 10 days (8 odd trading sessions). 

On Friday it bounced off a key support levels (Demand Zone). Today it broke out above the Resistance trendline & is ripe for a fresh move of 5% atleast & if the overall scenario remains good can move much higher. Also today its close competitor ITC came out with good numbers (Especially the FMCG segment delivering good gains on growth in margins).

HIndustan Unilever - 2 Year Daily Charts

Trading Strategy: Can Initiate Long positions around current levels or if it dips to 337-335 levels keeping an Initial Stop Loss levels of 330 levels for targets of 345-350 & higher if markets remain conducive. 

HLL is one of the Low Beta counter & hence any fierce rally in NIFTY may not translate in fierce rally in HLL & vice-versa.

Bajaj Auto

It's third time lucky for Bajaj Auto, after 2 unsuccessful attempt to breach 1650 levels, Bajaj Auto has managed to close above it today. 

Trading Strategy: Can Initiate Long positions on dips around 1670 levels with Initial Stop loss being  1650 for Medium to Long term targets of 1800+ Levels (Should be above 1650 levels). In short term still has strength to move up by another 5 percent if things remain conducive.

It would be prudent to take positions post RBI Meet morrow or to be even more safer on Friday.


13-Nov-2011 An Update: Both the Stocks rallied well. Infact HLL made a 10 Year high by closing above 370 levels. It's currently holding well at price of 395. Bajaj Auto to moved swiftly to 1820 levels & currently is consolidating around 1700-1750 levels.

May The Trades Be On Your Side