Stocks that were in focus include names like Tata Steel, which gained 3.27%, Cyient, which declined 4.91% and Gland Pharma, whose shares rose 3.72% on Monday.
Here’s what Vikas Jain, Senior Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
Tata Steel – Buy
The stock closed at a 4-month high with strong volumes and positive price action trending above its short and medium-term averages.
It is on the verge of a longer breakout from its long-term consolidation and poised for a fresh up move. Its higher bottoms on weekly charts protect the downside from current levels and risk-reward is in favour of longs.
We expect the stock to re-test the intermediate highs of Rs 125 levels over the next few weeks.
Cyient – Book Profits
A strong outperformer in the midcap IT sector, the stock surpassed its previous top and scaled a new all-time high. It witnessed a corrective action and slipped below the short-term averages after a lower top formation.
There could be a price retracement of the previous up move and we expect the stock to test the lower band of weekly averages near Rs 1225-1250 levels.
RSI has also reversed from its higher range and expects to follow through along with the price move.
Gland Pharma – Hold
The stock has witnessed a vertical fall from its all-time high of Rs 4,350 levels in Aug’21 to a low of Rs 861 in May’ 23 over the past 21 months.
Higher bottoms on monthly charts with positive price action and strong volumes indicate some strong buying at lower levels. On the higher side, the gap areas of Rs 1180-1200 will act as resistance; sustenance above these would give a strong breakout.
One can hold the position with a stop of Rs 970 from current levels.
(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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