Sectorally, buying was seen in banks, finance, IT, public sector, and telecom stocks while selling was visible in metals, consumer durables, and realty.
Stocks that were in focus include names like L&T which formed a Golden Crossover and rose nearly 1 per cent,
which gained over 2 per cent to hit a fresh 52-week high, and which gained over 3 per cent.
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:
L&T: Buy
The stock has rallied over 25 per cent so far in this quarter. On the daily and weekly charts, the stock has consistently formed higher high and higher low formations which are broadly positive.
In addition, on the daily charts, the stock has formed a golden cross formation (the rise of the 50-day moving average above the 200–day moving average) which indicates a further uptrend in the medium-term.
However, due to the temporary overbought zone, we could see some profit booking at higher levels. We are of the view that buying on dips and selling on rallies would be the ideal strategy for short-term traders.
The level of Rs 1900 or the 20-Day SMA (Simple Moving Average) at Rs 1850 would be the key support zone for the stock, and as long as it is trading above the same, the uptrend wave is likely to continue.
A close above Rs 1850-1900 levels could push the stock towards Rs 2050-2100. On the flip side, below Rs 1850, the uptrend would be vulnerable.
ICICI Bank: Buy
After a promising uptrend rally, the stock is witnessing a range-bound activity. On the higher side, it is consistently taking resistance near Rs 890 while on the lower side, it is consistently taking support near the Rs 850 level.
The medium-term texture of the stock is bullish but in the short-term time frame, a fresh uptrend rally is possible only after a breakout above Rs 902.
A close above Rs 902 could take the stock towards Rs 925-935. On the flip side, a close below Rs 880 could push traders to exit from the trading long positions.
Bank of Baroda: Buy
The stock has already rallied over 40 per cent so far in this quarter. On Thursday, the stock opened with a gap up and hit a fresh 52–week high of Rs 139.85.
A promising intraday rally indicates that the uptrend is likely to continue from current levels. In the short-term time frame, the stock has formed a strong price volume breakout continuation formation.
The texture of the pattern suggests that the uptrend momentum will continue in the near term. For the trend following traders, Rs 135 would be the sacrosanct level.
If the stock starts to trade above the same, then we can expect the uptrend continuation wave to continue up to Rs 145-150 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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