trading ideas: Big Movers on D-St: What should investors do with RVNL, IRFC and HDFC Life?
The S&P BSE Sensex which rallied more than 700 points hit a fresh record high of 62,412 while Nifty50 closed just a shade below 18,500 levels.
Sectorally, buying was seen in IT, oil & gas, public sector, capital goods, and energy space while some selling was seen in consumer durables.
Stocks that were in focus include names like RVNL which was up over 5%, IRFC which closed with gains of nearly 6% and
which rose more than 4% on Thursday.
Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd. at recommends investors should do with these stocks when the market resumes trading today:
The stock rallied over 5% on Thursday to hit a fresh all-time high of Rs 69.80. Currently, the stock is witnessing a breakout continuation formation and is consistently forming a higher bottom formation which supports further uptrend from the current levels.
However, in the short-term time frame, the momentum indicators indicate temporary overbought conditions.
For the trend-following traders, Rs 60 would be the trend decider level. As long as the stock is trading above the same, the uptrend wave is likely to continue.
A close above Rs 60 could take the stock towards Rs 75-80, and on the flip side, a close below Rs 60 could make the uptrend vulnerable.
IRFC: Book Profits
The stock has rallied over 35% so far in November. After a range breakout, the stock is consistently forming a higher high and a higher low formation.
The short-term structure of the stock is strong but currently in an overbought condition. Hence, buying on correction and sell on rallies would be the ideal strategy for traders.
The level of Rs 28 and Rs 27 would be the crucial support zone for the trades while Rs 32-35 could be the immediate resistance zone for the bulls.
HDFC Life: Buy
After a long time, the stock not only cleared the 200-Day SMA (Simple Moving Average) level, but it succeed to close above the same on Thursday.
A promising price volume rally and long bullish candle on the daily and weekly charts indicate a further uptrend from the current levels.
For the trend-following traders, Rs 555 or the 200-Day SMA would be the key support zone. If the stock succeeds to trade above the same, then it could move up to 595-600.
On the flip side, below Rs 555 traders may prefer to exit from the trading long positions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)