Sectorally, buying was seen in FMCG, utilities, power, consumer durables, and healthcare stocks while some selling was visible in auto space.
Stocks which were in focus on Monday included names like RVNL,
and IRFC.
Here’s what Rohan Shah – Head of Technical Analysis at Stoxbox recommends investors should do with these stocks when the market resumes trading today:
RVNL: Book Profits
RVNL has seen a buoyant spree in the last 6 weeks trading into no chart zone. The stock rallied from 36 to all the way till 80 levels in just 6 weeks which is an impressive rally.
Post breakout to the lifetime high, stock price gathered fresh momentum and scaled higher. Currently, the rally looks quite stretched at this moment and thus doesn’t offer a favourable risk-to-reward ratio to buy at the current market price.
As the stock is trading in no chart zone, external Fibonacci retracement helps to gauge the potential next resistance level.
As per the Fibonacci ratios, the stock has the potential to head higher towards 86 and 95 levels being 3.618 and 4.24 retracement ratios, respectively. Whereas on the downside key intermediate support is seen at 76-71.
Apollo Tyres: Buy
The stock witnessed a strong rally from June 2022 to September 2022, where prices surged from 167 to 303. However, post that price went into hibernation mode, trading into a tight range of 40 points i.e 260-300 levels.
This week, the price registered a decisive breakout from the mentioned consolidation range and has surpassed multi-year pivotal high to print fresh life highs which denotes strength and bullish bias in price.
As per the pattern, the stock has the potential to move higher towards 325 and 340 levels. On the other hand, key support is present around 300 – 288 levels.
IRFC: Wait & Watch for Rs 34 zone
The railway stocks have seen a buoyant spree recently and from a similar space, IRFC has witnessed an exponential gain in the last few weeks.
In mid-November 2022, the stock registered a decisive breakout from a multi-month consolidation and post that stock gathered further strength and scaled higher into uncharted territory.
Applying external Fibonacci ratios, the stock has an immediate hurdle around 34 mark (being a 2.00 Fibonacci ratio).
Going forward, sustenance above the same will open the way for 38.50 and 42 ( 2.618 – 3.14 Fibonacci ratio). On the opposite side key, intermediate support is placed around 31.25 and 28.70 levels.
(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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