Sectorally, buying was seen in infrastructure, metals, power, utilities, and oil & gas stocks while selling was visible in telecom and FMCG.
Stocks that were in focus include names like Welspun India which rose more than 15%, RVNL which closed with gains of 10%, and Safari Industries which pared gains after hitting a fresh 52-week high on Tuesday.
Here’s what Viral Chheda, Sr. Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:
Welspun India: Buy
From May 2022 to April 2023, prices moved in the range of 62-85 odd levels on the weekly charts. During this consolidation phase, volumes were quite low.
Once the range was breached on the higher side, bulls took control and moved the price to 102 odd levels. As the stock is trading at a 52-week high, we can see more upside from here.
The stock is moving above all the three major averages of 20-WMA, 50-WMA, and 200-WMA which is a good sign. On the higher side, resistances are placed around 111 odd levels from where correction can be seen.The stock could take support around 91 and 78 levels. A close above 113 could trigger further upsides which can take the stock towards 140 levels.
The Stochastics oscillator is also moving in an upward trend along with an increase in volume indicating further upside from here.
Hence, one can buy the stock at the current level and more on dips to 90 with a stop loss of 78 on a weekly closing basis. On the upside, we could see a level of 140-165 in the next 6-8 months.
RVNL: Book Profits
After moving in a range of 27 to 39 odd levels from Sept 2021 to Oct 2022, prices breached the consolidation channel and witnessed a sharp Bull Run to make an all-time high of 82 odd levels in Dec 2022 on the long-term chart.
For the next 12-15 weeks, the price moved sideways forming a Flag pattern and when the pattern was breached with high volume, the price made a new all-time high of 118 odd levels.
We have seen almost 100% up move in less than two months. Currently, the prices are highly overvalued and the Stochastics Oscillator is also moving in an overbought zone indicating some profit booking from here.
The profit booking from here can test the support on the lower side till 100 and 88 from where reversal can be seen to make new highs till 140 to 170 odd levels.
One can book partial profit at the current and avoid buying at the current level and wait for some correction till 100 to 88 odd levels.
Safari Industries: Buy
After making a double bottom around 1570 odd levels in 2022, the price has given a sharp upside move to make an all-time high of 2615 odd levels on the daily chart.
During this upward move, prices formed a Higher Top Higher Bottom pattern. With bulls in control, the stock has given almost 70% upside move from lows of 1570 levels.
As the volumes are getting low around this level we can see some profit booking and bears can take the price lower till 2200 to 2000 odd levels.
The Stochastics Oscillator is also moving in an overbought zone which indicates some downfall to take support of 2200.
One can book partial profit around this level and avoid fresh buying to witness some correction till 2200 to 2000 odd levels.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)
