The Indian market closed in the red on Friday but gained more than 1 per cent for the week ended June 3. Sectorally, selling pressure was seen in power, utilities, auto, and consumer durable stocks while buying was seen in IT, and energy stocks.
Stocks that were in focus include names like
which rose over 2 per cent, UltraTech Cements fell more than 5 per cent, and fell more than 4 per cent on Friday.
Here’s what Santosh Meena, Head of Research, recommends investors should do with these stocks when the market resumes trading today:
RIL: Buy
The primary structure of the counter is in an uptrend. It is traveling around at its 52-week high levels. The overall structure looks lucrative as it trades above its 100, 200-days SMA moving averages.
The stock has a demand zone near Rs 2,600-2,650. On the upside, Rs 2,810-2,820 are an immediate resistance zone.
A close above these levels could take the stock towards Rs 3,000 level in the near-term. On the downside, if it breaks below Rs 2,600 level, then Rs 2,500 is the next critical zone.
UltraTech Cements: Sell
The counter is witnessing a descending triangle formation pattern. In the last trading session, the stock has broken neckline support with strong volume.
The stock is trading below all its averages which is also a negative sign for the counter.
On the downside, Rs 5,600 is the critical level and below this, we can expect a free fall to Rs 5,000. On the upside, Rs 6,000 is an immediate susceptible area.
Shree Cement: Buy on dips
The counter has witnessed a breakdown from the Head & Shoulder pattern formation in the longer timeframe. The overall structure is distorted but it has a demand zone near Rs 20,000.
On the upside, Rs 22,000 is an immediate susceptible area; above this, we can expect a run-up towards Rs 23,000+ levels in the near term.
(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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