Sectorally, buying was seen in power, utilities, IT, and healthcare stocks while some selling was seen in banking stocks.
Stocks that were in focus included names like
which rose by about 5%, which rallied nearly 3%, and which pared some gains after hitting a fresh 52-week high.
Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:
NTPC: Buy
After making multiple bottoms around 134 in June 2022, the price has given a sharp upside rally to make a high of 176 odd levels in September 2022 on the daily charts.
Price has seen a Higher Top Higher Bottom pattern during this period. The stock has seen some selling from the highs. It has retraced almost 50% of the previous rally to make a low of 155 odd level.
Volumes were marginally higher than the previous rally. In the last 20-25 days, the price has given some upward move making an Ascending Triangle Pattern.
This week, the price breached the pattern on the higher side with high volumes to make an 11-year high of 181 odd levels. We can see further upside from here.
The Stochastics Oscillator is also moving in an upward trend along with an increase in volume. One can buy at this level and more on dips of 170 level with a stop loss of 160 on a weekly closing basis.
On the upside, we can see a level of 210-230 in the next 10-12 months.
Canara Bank: Hold
After making a high of around 272 in February 2022, the price has seen a sharp profit booking as it made a low of 171 odd levels in June 2022.
During this period, the price has made a Lower Top Lower Bottom pattern. Volumes were quite low in this downfall. The stock gave an upward move to retest its previous high of 272 before witnessing some selloff to make a low of 207 in Sept 2022.
The next 15 days’ price formed a Rectangle Pattern and breaching the pattern at a higher level price gave a sharp upward move to make a 2-year high of 297 odd levels.
The Stochastics Oscillator is trading at an overbought zone and from here some correction can be seen. One can book some profit at the current level. Fresh buying is avoidable at the current level and wait for some dips till the 270-250 level.
Hence, we recommend investors wait for some correction and buy around 270 with more at dips of 250 level with a stop loss of 230 on a weekly closing basis and on the upside, we can see the level of 330-380 in the next 10-12 months.
BHEL: Buy
On the longer-term chart, the stock gave an upside rally from the lower level of 18 in March 2020 to make a 3-year high of 80.50 odd level in October 2021.
Volumes were quite high during this rally. Also, the stock has been making a Higher Top Higher Bottom pattern.
From the high, prices witnessed some selling pressure as they retraced almost 65% to make a low of 41 odd levels in June 2022.
From Oct 2021 till-date, the price has formed a Rounding Top pattern with the neckline forming around 81 odd levels and once this level is breached, we can see further bull run to 95-105 odd levels.
The stochastics Oscillator is moving in an upward trend along with an increase in volume indicating further upside from here.
We can buy the stock around this level and more on dips of 65 with a stop loss of 58 on a weekly closing basis for an upside level of 95-105 in the next 10-12 months.
(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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