Are these Three Logistics Stocks a Buy?

  • Stock Market Analysis
  • Editors Pick

Today I will look at three big names in the logistics space. The first is Delhivery (NS: DELH ), and the second is Blue Dart Express Ltd (NS: BLDT ). While the third is Allcargo Logistics (NS: ACLL ). Additionally, I have attached my pre-market YouTube video for today. In it, I have looked at the Nifty and Bank Nifty as usual. Moreover, I have also analysed Titan (NS: TITN ), Star Health and Allied Insurance Company Ltd (NS: STAU ), and Nazara Technologies (NS: NAZA ).

The first stock being studied today is Delhivery. The equity released its results recently, and I must say it preserved its reputation of being a loss-making entity. This is as the revenue rose from Rs 1,317 crore to Rs 1,764 crore. However, the loss of the firm grew from Rs 130 crore to Rs 400 crore. Thus, I expect the dismal performance of the company to trigger a decent downswing in the coming weeks. I say this as the stock on the weekly chart has formed a bearish pattern. However, for any down move to materialise, we will first have to break the support at Rs. 540, as it is a strong quant support zone. If we were to break this level, then the next support is at Rs. 480 and Rs. 445. Also, on the upside, any up move towards Rs. 620 can be considered as a dead cat bounce. Hence, I would avoid any longs in the equity as long as we stay below the Rs. 620 mark.

The second stock being looked at is Blue Dart. The stock has performed relatively well in the past few weeks. However, I now expect it to form a small pullback after which we will have a further upwards move. I say this as the stock on the daily chart is presently resting on the 20-day moving average. If it were to break this, then I expect it to have a decline until my quant support zone at Rs. 8,200 and Rs. 7,800. Once we reach any of these zones, I expect the stock to commence a fresh-up move in a longer timeframe. This is, as I expect, a medium-term rise until my quant resistance zones at Rs. 9,100 and Rs. 9,800. I say this as I consider the current pullback a simple cooling-off period for the bulls.

The third stock is Allcargo Logistics. I chose to look at this equity, as it is at a critical turning point. I say this as the equity had a moving average crossover in the daily chart, which is a bullish sign. However, the issue the bulls will have to tackle with is that the stock is coming into very strong resistance. This is as there is a strong quant resistance level at Rs. 325, which is then further solidified by the 200-day moving average acting as a resistance at roughly Rs. 340. Thus, I would urge traders to avoid any longs until the stock clears these resistance zones. On the other hand, if the stock fails at my resistance zone, then I expect an initial fall to Rs. 255, which is a very strong support zone. If it breaks that zone, then the next key support is at Rs. 190.

Overall, all the stocks mentioned above are showing diverse characteristics. In the medium term, the only stock I am bullish on is Blue Dart. This is as I do not expect Delhivery and Allcargo to have a strong up move in the coming weeks. This is as the price action on the charts simply doesn’t support an up move in these two names. Lastly, do watch my YouTube video attached below if you are interested in understanding how I expect Titan, Star Health, and Nazara Technologies to perform in the coming weeks.

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.

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