The stock of HBL Engineering has been in a downtrend since mid-December after facing resistance at ₹700. But last week, the stock found support at ₹500 and rebounded.
It rallied in the past few sessions, and the price is now above the 20- and 100-day moving averages, a positive sign. Although the price declined in the last session, the uptrend has not been invalidated. We expect the stock to resume the rally and appreciate to ₹700 again in the short term. So, one can buy at ₹570 and accumulate if the price dips to ₹550. Place astop-loss at ₹520. Raise the stop-loss to ₹600 when the stock hits ₹640. Tighten the stop-loss further to ₹640 when the price touches ₹680. Book profits at ₹700.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
