Todays Pick

Shoppers Stop (₹353.3): BUY

Gurumurthy K BL Research Bureau | Updated on October 25, 2021

 

The outlook for the stock of Shoppers Stop is bullish. After surging over 16 per cent in the past week, the stock had begun the week on a strong note. It rose 10.18 per cent on Monday. The strong rally since last week has broken the uptrend channel that has been in place since May last year on the upside.

The stock has also risen past the 38.2 per cent Fibonacci retracement resistance level of ₹326. The levels of ₹326 and ₹315 – the upper end of the channel will now act as a good resistance-turned-support. Dips to these supports are likely to get fresh buying interest in the market. The stock can rise to ₹410 initially and then ₹485-₹500 eventually in the coming weeks.

Traders can go long now and accumulate on dips at ₹330 and ₹320. Stop-loss can be placed at ₹305. Trail the stop-loss up to ₹365 as soon as the stock moves up to ₹385. Book partial profits – for 30 per cent of the holdings at ₹405 – and revise the stop-loss for the rest of the holding to ₹380. Exit the balance at ₹445.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on October 26, 2021

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