Big Movers on D-Street: What should investors do with JSW Steel, Marico and Hindustan Zinc?

Stocks that were in focus include names like Hindustan Zinc, which gained 8.22%, Marico, which was down 2% and JSW Steel, whose shares rose 0.3% on Thursday.

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

JSW Steel – Buy
After a sharp uptrend rally currently, the stock is witnessing rangebound activity at higher levels. However, the short-term trend is still on the positive side.

Technically, on daily charts, the stock is holding a higher bottom series formation and comfortably trading above 20-day SMA (Simple Moving Average) which is broadly positive. For the trend-following traders now, 780-777 would be the sacrosanct support levels.

Above this, the stock could move up till 810-820. On the other side, below 777, the uptrend would be vulnerable. Below the same, we could see a quick correction till 765 -760.

Marico – Neutral
After a short-term correction, the stock is consolidating near 20 and 50-day SMA (Simple Moving Average). The short-term texture of the stock is non-directional; perhaps traders are waiting for either side to break out.For the bulls, 540 would be the important breakout level to watch. And if the stock manages to close above the same, we can expect a quick uptrend rally towards 555-560.

On the flip side, trading below 520 or 50 and 20-day SMA, may increase further weakness up to 510-500.

Hindustan Zinc – Buy on dips
Last Thursday, the stock rallied over 8%. After a gap-up opening, the stock successfully cleared the medium-term resistance of 325 and post breakout it intensified the positive momentum.

On daily and weekly charts, the stock has formed promising price volume breakout formation, which is largely positive.

We are of the view that the short-term texture of the charts is positive but due to temporary overbought conditions, we could see some profit booking at higher levels.

For traders now, buying on dips and selling on rallies would be the ideal strategy. Technically, 345-355 would be the immediate resistance zone while 330-325 could act as a key support area. However, below 325, the uptrend would be vulnerable.

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