On Friday, IT index climbed 1.34%, realty jumped 1.31%, and FMCG 1.29%. Utilities, oil & gas and power were the laggards.
Stocks that were in focus include names like Page Industries, which fell 8.78%, RIL, which gained nearly 3% and Med Plus, whose shares surged 16.25% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today:
RIL: Buy
The counter has witnessed a breakout of inverse head and shoulder formation on the longer timeframe with strong volume. It suggests a potential bullish reversal in the counter. The strong volume indicates increased buying interest and confirms the significance of the breakout. Then it retested its neckline breakout levels and started a new leg of the rally towards Rs 2600.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
It has a psychological resistance level of Rs 2550. If the price manages to break above the resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of Rs 2600 or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 2415. Support levels are price levels where buying interest typically emerges and can potentially halt a declining price trend.
Med Plus: Risky Buy
The primary structure of the counter is continuously following the downtrend, but from the last few trading sessions, the stock has bottomed out with strong volume. It is trading above its all important moving averages.
On the upside, Rs 850 is an immediate susceptible area. Above this, we are expecting a long run-up towards Rs 900 levels. On the downside, Rs 730 is the critical level.
Page Industries: Buy for Long Term
The counter has faced resistance at around Rs 44,000 levels (200-DMA) and shown a profit booking from that level. In the last trading session, it broke a neckline support of Rs 36,000 and made a low of Rs 34952 with strong volume in the first hour of the session, but after that, it showed a massive recovery from the lower levels and closed above the Rs 37500 level.
On the daily chart, it formed a hammer candlestick formation that indicates that the asset price has reached its bottom and a trend reversal could be on the horizon. Moreover, this pattern shows that sellers, or bears, entered the market, pushing up the price, but the bulls absorbed the pressure and overpowered them to drive up the price.
On the upside, Rs 39,000 is the psychological support level; above this, we can expect a short-term rally till Rs 40,000. Only long term investors are advised to take positions at the current level with a stop-loss of Rs 34,950.
(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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