Technical Analysis: Astra Microwave Products, Astra Microwave Products And Zydus Wellness

Astra Microwave Products (₹833.10)

Cracks a key resistance

The stock of Astra Microwave Products formed a higher low last month. As the price moved up in the recent weeks, it surpassed both 50 and 200-day moving averages as well as the resistance at ₹820. The prevailing price action shows strong signs of a rally from the current level, which can potentially lift the price to ₹1,000 in the coming months.

So, go long at ₹830 and buy more shares if the price moderates to ₹780. Keep initial stop-loss at ₹710. When the scrip surpasses ₹880, revise the stop-loss to ₹780. Tighten the stop-loss further to ₹880 when the price hits ₹950. Liquidate the longs at ₹1,000 since there could be a corrective fall off this psychological level.

Dhanuka Agritech (₹1,613.20)

Upward reversal in trend

The stock of Dhanuka Agritech depreciated between August and October. However, towards the end of October, it found support at ₹1,350 against which it has recovered in the recent weeks. Although it is now facing a roadblock at ₹1,660, we expect the stock to eventually breach this. The breakout of ₹1,660 will open the door for an upswing to ₹2,000.

But there is a chance for the price to moderate to ₹1,500 before the breakout of ₹1,660. Participants can buy the stock now and accumulate if there is a decline to ₹1,500. Place stop-loss at ₹1,330. When the price hits ₹1,900, revise the stop-loss to ₹1,770. On a rally to ₹1,950, modify the stop-loss to ₹1,880. Exit at ₹2,000.

Zydus Wellness (₹2,016.05)

Confirms inverted head & shoulder

The stock of Zydus Wellness turned the trend bullish towards the end of October after finding support at ₹1,800. The upward movement since then has been along a rising channel. In early December, the stock broke out of a resistance at ₹2,000, which also happened to be the neckline of an inverted head & shoulder pattern.

The confirmation of this chart set up has further reinforced the bullish trend reversal. So, one can buy at ₹2,015 and accumulate if the price slips to ₹1,900. Keep initial stop-loss at ₹1,750. When the stock touches ₹2,200, alter the stop-loss to ₹2,050. When the price rises to ₹2,350, tighten the stop-loss to ₹2,150. Book profits at ₹2,500.