Following dovish commentary by the US Fed Chair Jerome Powell, the domestic equity market made yet another record high and ended in the green zone for the eighth straight day.
IT, PSU banks, realty and metals gained while auto stocks saw some selling on the back of mixed monthly sales numbers.
Stocks that were in focus include names like
which was up nearly 5%, L&T which was up 1.4% and which rose over 2% on Thursday.
Here’s what Amol Athawale, Deputy Vice President – Technical Research at Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
KRBL
In this quarter so far, the stock rallied over 17%. Last Thursday, the stock opened with a gap up and successfully cleared the short-term resistance of 418.
A promising range breakout formation and long bullish candle are indicating further upside from the current levels. For the breakout traders, 415 would be the key level to watch.
Overall chart structure suggests if the stock sustains above the same, then the breakout continuation texture is likely to continue up to 460-480.
L&T
Last Thursday, the stock registered a fresh all-time high of 2110. On daily and intraday charts, the stock consistently formed higher high and higher low formations. It is comfortably trading above 10-day SMA (Simple Moving Average) which is broadly positive.
We are of the view that as long as it trades above 2050 or 10-day SMA, the uptrend wave is likely to continue. Above this, it could move up to 2175-2200.
On the flip side, below 10-day SMA or 2050 uptrend would be vulnerable.
Escorts
After a 2190 range breakout, the stock consistently held a higher bottom formation.
A promising higher bottom formation on intraday and daily charts and modest volume activity suggest the continuation of an uptrend in the near future. However, due to temporary overbought conditions, we could see some profit booking at higher levels.
Hence, buying on dips and selling on rallies could be the ideal strategy for short-term traders.
In the near future, 2200 and 2250 could act as key support zones whereas 2500-2550 would be the key resistance zone. Below 2200 traders may prefer to exit out from the trading long positions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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