Sectorally, buying was seen in oil & gas, utilities, power, energy, and IT stocks while selling was seen in consumer durables, banks, capital goods, and realty stocks.
Stocks that were in focus included names like
which was down more than 6%, UPL which rose more than 5%, and which closed with gains of more than 4% on Thursday.
Here’s what Amol Athawale, Deputy Vice President – Technical Research at Kotak Securities Ltd. recommends investors should do with these stocks when the market resumes trading today:
Policy Bazaar: 20-DMA eyed
On the daily and weekly charts, the stock is consistently facing selling pressure at higher levels. After a pullback rally from 461 to 494 once again, it took the resistance near the 20-Day SMA and corrected sharply.
It has corrected by over 14% so far in this month and has also formed a bearish candle which is broadly negative.
We are of the view that as long as the stock is trading below the 20-Day SMA (Simple Moving Average) placed at Rs 460, the correction formation is likely to continue.
A close below the 20-DMA could take the stock towards 380-370. On the flip side, 421 would be an immediate hurdle. A breakout above the same could result in a minor pullback rally till 435-445.
UPL: Buy
After a medium-term price correction, the stock took the support near 655 and then reversed. Post the reversal, it has formed a double bottom formation on the daily charts and also formed a higher bottom formation on the weekly charts.
The stock formed a long bullish candle along with incremental volume activity and promising reversal formation near the 20-Day SMA (Simple Moving Average), indicating further upside from current levels.
For positional traders, the 20-Day SMA or 685 could be the key level to watch, if the stock manages to trade above the same. We can expect an uptrend continuation wave up to 730-750.
EID Parry: Buy
The stock has rallied over 13% so far in the month of October. On Thursday, the stock rose more than 4% and also registered a fresh all-time high of 670.
On the daily and weekly charts, the stock has formed a breakout continuation formation. It has also formed a long bullish candle which is broadly positive.
The short-term texture of the stock suggests a strong possibility of a continuation of an uptrend wave in the short run.
We are of the view that as long as the stock trades above 620, the uptrend wave is likely to continue. Above this, it could move up to 700-725.
On the flip side, if the stock closes below 620, traders may prefer to exit from 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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