Sectorally, buying was seen in metals, realty, utilities, power, and oil & gas stocks while some selling was seen in IT stocks.
Stocks that were in focus included names like
which closed with gains of nearly 2%, which pared gains after hitting a fresh 52-week high, and Container Corp which ended with gains of over 4%.
Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today:
Bharti Airtel: Buy
The stock has rallied nearly 7% so far in October. On Thursday, the stock gained 1.7%, it also registered a fresh all-time high of 822.20.
On the daily charts, the stock has formed an uptrend continuation formation and a higher bottom formation on the weekly charts.
The short-term texture of the stock suggests a strong possibility of the continuation of an uptrend wave in the short run.
We are of the view that as long as the stock is trading above 795, the uptrend wave is likely to continue. Above this, it could move up to 840-860. On the flip side, below 795, positional traders may prefer to exit from the trading long positions.
NHPC: Buy
On October 27th, the stock registered a fresh all-time high of 46.90. In this month so far, it has rallied nearly 30%. On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for NHPC.
However, on the intraday chart, the texture indicates a temporary overbought situation and traders may take a cautious stance near the 49-50 level.
Technically, as long as the stock is trading above 43, the uptrend texture is likely to continue up to 50.
Further upside may also continue which could lift the stock up to 55, and on the flip side, below 43, the uptrend would be vulnerable.
Container Corp: Buy
The stock rallied over 4% on October 27th. On last Thursday, the stock opened on a strong note and quickly surpassed the resistance of 770 with modest volume activity.
Post the breakout, it maintained the uptrend momentum throughout the day which is grossly positive.
On the short-term time frame, the stock is holding a higher bottom formation and the texture of the pattern suggests breakout action will continue in the near term if the stock succeeds to trade above the 760 level.
For the trend-following traders, 760 could be the sacrosanct level, trading above the same, we can expect an uptrend continuation wave up to 820-840.
(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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