Thứ Sáu, Tháng Sáu 2, 2023
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Engineers India, JBM Auto and Jubilant Foodworks Technical Analysis: What the Charts Say

Indian engineer (₹98,2)

Hit the highest level in three years

Engineers India’s share price has fluctuated between ₹55-90 since February 2020. Two weeks ago, the stock broke out of ₹90, indicating a bullish trend reversal. It is currently struggling to break above the key $100 level. However, we expect the stock to drop slightly because of this hurdle but eventually recover and cross the $100 mark soon. As a result, traders can deploy a third of the total amount intended for this stock at current levels to buy.

When the price drops to $90, buy with 2/3 of the remaining capital. Therefore, the average purchase price will be ₹92. Set an initial stop loss at $78 and increase it to $98 when the price moves above $110. On a rise to ₹125, exit 50% of all long positions and tighten the stop loss to ₹115. Liquidate remaining purchases at ₹140.

JBM . car (₹772.7)

Set to resume uptrend

JBM Auto’s share price has risen since the beginning of this year. But after hitting ₹850 a few weeks ago, it seems to have lost momentum. In fact, the price fell and the stock closed at ₹772.7 last week. That said, there is a strong support at ₹735, where the trendline support is likely to coincide and the broader trend remains bullish.

So the recent drop looks like a correction and we expect the uptrend to continue this week. Therefore, one can currently buy shares of JBM Auto for around ₹773 and buy more in case the price drops to ₹745. Keep the stop loss at ₹710. Once the stock crosses the ₹800 level, modify the stop loss to ₹760. Furthermore, tighten the stop loss to $810 when the price breaks through $850. Liquidation of long positions at ₹880.

The jubilant food factory (₹467.4)

Expected breakout

Shares of Jubilant Foodworks, which have been in a downtrend, seem to have bottomed out. The stock found support at ₹420 and bounced back off this level. It is currently testing resistance at ₹470 and widespread price action hints at an impending breakout. Such a move would confirm a bullish trend reversal and would greatly increase the chances of Jubilant Foodworks rallying towards ₹540 in two to three months.

Therefore, we suggest traders to buy the stock now at around ₹467 and buy more shares if the price drops to ₹452. Keep the initial stop loss at ₹430; raise it to ₹485 when the price exceeds ₹510. Tighten the stop loss further to ₹510 when the stock hits ₹525. Take profit at ₹540 as this is the resistance.

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