Stocks that were in focus include names like Cipla, which rose 9.78%, RVNL, which fell 6.85%, and M&M, whose shares declined 6.23% on Thursday.
Here’s what Amol Athawale, Technical Analyst – VP at Kotak securities, recommends investors should do with these stocks when the market resumes trading today:
Cipla – Buy
On Thursday, the stock rallied nearly 10%. Despite weak market conditions, Cipla maintained its strong momentum throughout the day.
In the short-term period, the stock has formed a strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if the stock succeeds to trade above the 1130 level.
For the breakout traders now 1130 would be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to 1200-1235.
RVNL
After a sharp uptrend rally, the stock consistently faces selling pressure at higher levels. In this week so far, the stock corrected over 8%.On daily charts, it has formed a double top formation which indicates weak sentiment is likely to continue in the near future.
For the traders now, 120 or 50-day SMA would be the trend decider level. Below this, the stock slipped to 115-110. On the other hand, a fresh uptrend rally is possible only after the dismissal of 135 above the same, it could retest the level of 143-145.
M&M
On Thursday, the stock opened with a gap down and held the weak momentum throughout the day, which is largely negative. On daily charts, the stock has formed a bearish candle and after a long time, it closed below the 20-day SMA (Simple Moving Average).
Technically, 1420 or 50-day SMA is the next support zone for the stock. Below the same, the selling pressure is likely to accelerate. It could slip till 1410-1400.
On the flip side, 1470 would be the key resistance zone. Above the same, we could expect a quick pullback rally till 1500-1520.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)