Big Movers on D-Street: What should investors do with Paytm, Inox Wind and Bajaj Finserv?

Stocks that were in focus include names like Paytm, which gained 6%, Nestle, which was up 4% and Bajaj Finserv, whose shares fell nearly 1% on Thursday.

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

Paytm
On Thursday, the stock rallied nearly 6%. Despite tepid market conditions, the stock held positive momentum throughout the day.

On daily and weekly charts, it has formed promising price volume breakout formations. It has also formed a long bullish candle on daily and weekly charts, which indicates continuation of uptrend in the near future.

For the breakout traders now, 740-735 would be the key level to watch out for. Above the same, the stock could move up to 785-800. On the other side, below 735, traders may prefer to exit long positions.

Inox Wind
In this quarter so far, the stock has rallied over 50%. After a medium-term correction, eventually, the stock took the support near 95 and reversed. After reversal formation, it comfortably traded above the 200-day SMA (Simple Moving Average) which is broadly positive.In addition, a higher bottom series on daily and weekly charts supports further uptrend from the current levels. We are of the view that as long as the stock is trading above 140, the uptrend wave is likely to continue.

Above the same, the stock could rally towards 155-160. On the other side, below 140, the uptrend would be vulnerable.

Bajaj Finserv
After a promising uptrend rally, the stock is witnessing a rangebound activity. However, the medium-term texture of the stock is still on the positive side.

Technically, the stock is holding higher bottom formation and comfortably trading above 20-day SMA (Simple Moving Average). For the trend-following traders, 20-day SMA or 1440 would act as a sacrosanct support zone.

As long as the stock is trading above the same, positive sentiment is likely to continue. Above this, the stock could rally till the 200-day SMA or 1510. Further upside may continue which could lift the stock up to 1550.

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