Domestic benchmark indices staged a quick recovery on the Friday, despite the relentless FPI selling, to settle flat on a weekly basis. The BSE Sensex jumped over 300 points or 0.51 per cent, to settle at 60,261.18. The NSE Nifty50 index declined 98.40 points, or 0.55 per cent, to end the week at 17,956.60.
As the BSE Sensex staged a strong rebound, select stocks such as HDFC Bank, Cyient and Anand Rathi Wealth were on traders’ radar. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets suggests investors should do with these stocks during the Monday’s trading session:
The stock recently tested the 200-days SMA (Rs 662) in December 2022 and has seen strong buying. On the weekly chart, the chart is showing a higher top higher bottom formation which is a sign of strength. Further, the momentum indicator (viz the RSI) is gaining momentum. The stock is also showing higher relative strength and is outperforming benchmark indices. Hence, it is evident that momentum on the upside is likely to continue. One can buy the stock at current price with a stop loss of Rs 730 and targets of Rs 850 and Rs 890.
The stock gave a five-week consolidation breakout at Rs 872 level and closed above it with higher volumes. The weekly RSI has confirmed the momentum by making a new high. The stock is marginally outperforming benchmark indices. The short-term moving averages viz 20-50 days SMA are positively poised, which signals upside momentum. One can hold the stock at current price with a stop loss of Rs 812 and target of Rs 990 and Rs 1,050 levels in the next couple of weeks.
The stock made lower top-lower bottom formation on the daily chart. It is trading below the 50-days SMA at Rs 1,608. However, the RSI never went below the 30 reading in the current fall. This clearly suggests a pullback is in offing. Hence, one can hold the stock at the current level and maintain the stop loss to Rs 1,570. On the upside, it may test Rs 1,660 and Rs 1,720 levels in the near term.
Also read: SGX Nifty up 28 points: Asian markets, dollar movement, Q3 earnings, FPI flows & more
Also read: TCS to turn ex-dividend today. Record date, payment date, dividend history & more