Big Movers on D-Street: What should investors do with Ramkrishna Forgings, Ashok Leyland and Kalyan Jewellers?

Stocks that were in focus include names like Ramkrishna Forgings, which rose 4.06%, Kalyan Jewellers, which was up 17.16% and Ashok Leyland, whose shares rose 4.51% on Friday.

Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today:

Ramkrishna Forgings – Buy on Dip
The counter has a strong bullish setup where it is forming an upward channel formation on the daily timeframe. This pattern is characterized by a series of higher highs and higher lows, indicating increasing buying pressure.

After reaching a fresh 52-week high, the counter retracted and successfully retested its previous breakout level of Rs 365, which can act as support as the stock starts its new leg of rally towards the Rs 440 level. The high volume during the breakout further reinforces the significance of this move.

The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.

The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.

On the upside, 440 is a susceptible area. Above this, we can expect a run-up towards Rs 480 levels in the near term. On the downside, Rs 380 is major support for any correction; below this, Rs 365 may be the next strong support level.

Kalyan Jewellers – Buy on Dip
The counter has witnessed a breakout of a triangle pattern after a long consolidation. Additionally, the counter is trading above all important moving averages, which indicates a positive trend.

It is trading above important moving averages which can be seen as a positive sign for long-term investors. These factors suggest that there is potential for an upward breakout in the future.

It has a psychological resistance level of Rs 135. If the price manages to break above the resistance level with conviction, then Rs 154+ will be the next short-term target.

On the downside, if there is a correction, the major support level is identified at Rs 100, and below this, Rs 122 will be the next strong support.

Ashok Leyland – Buy for Long Term
On the longer timeframe, it is forming a triangle pattern, however, it is facing resistance at Rs 170 level. In the last trading session, the counter witnessed a breakout of an inverse head & shoulders pattern with strong volume.

The overall structure of the counter is lucrative as it is trading above all the important moving averages.

On the upside, Rs 170 is a susceptible area; above this, we can expect a run-up towards Rs 190 levels in the near term. On the downside, Rs 144 is major support for any correction.

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