Indian benchmark indices ended the week sharply lower on Friday, extending the weakness for the straight third session. BSE Sensex tumbled more than 540 points or 0.75 per cent to settled at 59,900, while Nifty50 tumbled 133 points or 0.74 per cent at 17,859.
Select stocks including LTIMindTree, Rama Steel Tubes and Speciality Restaurants were at the radar of traders. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets suggests investors should do with these stocks during the Monday’s session:
LTIMindtree | Sell | Target Price: Rs 4,000-3,800 | Stop loss Rs 4,341
The stock is making a lower top lower bottom formation on the daily chart, which is sign of weakness. The stock is also showing poor relative strength against benchmark indices. The stock had made a low of Rs 3,733 on 26th May 2022 when the reading of RSI went down below 30. Till date, the RSI has not gone above 70. This clearly reflects that the stock is in a downward trajectory. Further, the stock is trading below the 200-days SMA for nearly 5-weeks. One can sell with a stop loss of Rs 4,341 for a target of Rs 4,000 and Rs 3,800.
Rama Steel Tubes | Hold | Target Price: Rs 48-55 | Stop Loss: Rs 33
The stock is showing strong relative strength against the benchmark indices. The RSI is gaining momentum which is a positive sign. The prices are continuously trading well above the short-term moving averages 20/50-days SMA. This suggests that the momentum on the upside is likely to continue. One can hold the stock with a stop loss of Rs 33 and target Rs 48 and Rs 55 in the next couple of weeks.
Speciality Restaurants | Hold (with caution) | Target: Rs 276-300 | Stop loss: Rs 207
The stock is continuously making a higher high formation on the weekly chart. Further, we are observing that in the current week, the stock made a new all-time high which was not supported by the momentum indicator RSI. Hence, one needs to be cautious at the current level Rs 246 and maintain the stop loss to Rs 207. On the upside it may test Rs 276 and Rs 300 levels.