Big Movers on D-St: What should investors do with M&M Financial Services, Varun Beverages and Rail Vikas Nigam?

Sectorally, buying was seen in realty, public sector, telecom, banks, and FMCG, while selling was visible in utilities, power, IT and auto stocks.

Stocks that were in focus included M&M Financial Services, which rose over 13%,

, which rallied more than 5% and , which closed with gains of over 6% on Thursday.

Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:

M&M Financial Services: Buy

M&M Financial Services rallied over 13% on November 3rd. On Thursday, the stock opened with a gap up and successfully cleared the 50 and 20-Day SMA (Simple Moving Average) resistance zone with strong volume activity.

Post the breakout, it maintained the uptrend momentum throughout the day, which is grossly positive. In the short-term time frame, the stock formed a strong price volume reversal formation.

The texture of the pattern suggests that the trend reversal action will continue in the near term. For the swing traders, Rs 209 could be the sacrosanct level.

If the stock starts trading above the same, then we can expect the uptrend to continue up to Rs 230-235. On the flip side, below Rs 209, the uptrend would be vulnerable.

Varun Beverages: Buy on dips

In this week so far, the stock has rallied nearly 15%. On the daily and intraday charts, it is consistently forming an uptrend continuation formation which supports further uptrend from current levels.

Last Friday, the stock cleared the short-term resistance of Rs 1,200 but failed to close above the same. The short-term texture of the charts is bullish but mildly overbought.

Due to temporary overbought conditions, we could see some profit booking at higher levels. However, the medium-term trend is still on the positive side unless it starts trading below Rs 1,100. Positional traders retain an optimistic stance and look for an upside of Rs 1,275-1,325.

Fresh buying can be considered now or on dips, if any, between Rs 1,190 and Rs 1,150 levels with a stop loss below Rs 1,100.

RVNL: Buy

The stock has rallied over 25% so far in this quarter. On Thursday, despite tepid market conditions, it advanced over 5% and has also formed a long bullish candle which is broadly positive.

On the daily and intraday charts, the stock has formed a higher high and higher low series pattern, indicating continuation of the uptrend in the near future.

For the trend following traders now, Rs 40 could be the key level to watch. If the stock manages to trade above the same, then we can expect the uptrend continuation wave up to Rs 47-50.

On the flip side, below Rs 40, traders may prefer to exit from long positions.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)