Technical Outlook for Tata Chemicals, CPCL, DMart, Shakti Pumps

The Hindu BusinessLine's Tech Trail column, answering reader queries on four stocks, advised exiting Tata Chemicals and Shakti Pumps India while keeping Chennai Petroleum Corporation (CPCL) and Avenue Supermarts (DMart) with a series of revised stop-losses.

Tata Chemicals was at ₹644 when the column answered, against a reader's purchase price of ₹782. The trend has been down since October 2024, and resistance at ₹830 is holding, which keeps the broader downtrend intact. Support sits at ₹580. The column expects the stock to break that support and fall to ₹470 in the coming months, with a bounce after that capable of reaching ₹700 or ₹800. A slip below ₹580 opens downside risk to ₹360–₹350. Because the chance of further decline is higher, the column advised exiting the stock and accepting the loss; accumulating around ₹580 is not advisable, it said.

For CPCL, the reader's entry was ₹1,160 and the stock stood at ₹1,376. The broader trend is up and strong, the column said. Within it, the stock hit a high of ₹1,677 and has been dropping from there; a corrective fall to ₹1,250–₹1,230, or even ₹1,160, is possible in the short term. After that, the price can reverse higher, with a fresh rally targeting ₹1,850, the column said. It advised holding with a stop-loss at ₹1,070, and told investors with risk appetite to accumulate on dips at ₹1,270 and ₹1,190. It also laid out a sequence: move the stop-loss to ₹1,380 when the price reaches ₹1,540, revise to ₹1,560 at ₹1,640 and to ₹1,690 at ₹1,760, and exit at ₹1,830.

Avenue Supermarts (DMart) was at ₹3,830, below the reader's purchase price of ₹4,100. The stock has been oscillating between ₹3,300 and ₹4,900 over the past couple of years and is now moving lower within that range, the column said. A fall to ₹3,500–₹3,450 looks likely in the short term, followed by a bounce that can carry the price to ₹4,600–₹4,800. An extended rise to ₹5,100 cannot be ruled out. The column advised holding with a stop-loss at ₹3,210, accumulating at ₹3,500, and raising the stop-loss to ₹3,650 when the price reaches ₹4,180. It then set the stop-loss at ₹4,220 when the share price touches ₹4,430 and at ₹4,530 when it touches ₹4,750, with an exit at ₹4,800. If the price breaks below ₹3,300, the stop-loss should be honoured, it said.

Shakti Pumps India, bought by the reader at ₹580, was at ₹467. The stock has fallen more than 65% from its January 2025 high of ₹1,387, with no sign of a reversal, the column said. Price action since April shows the stock struggling to sustain a rise above ₹600, the column said, leaving the risk of a break below the next support at ₹430. A break below ₹430 carries the risk of a tumble toward ₹300 or lower, the column said. A bounce from around ₹430 would only turn the outlook positive if the stock sustains a move above ₹600, it said; only then does a rise to ₹700–₹800 come into the picture. The column called such a rise less likely and advised accepting the loss and exiting now.