Stocks that were in focus include names like Trent, which gained 8%, Sobha, which jumped 0.6%, and SpiceJet, whose shares rose 9% on Tuesday.
Here’s what Viral Chheda, Sr Technical Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today.
Trent
In the daily chart after taking support at lower level of 50 DMA at 5095 in July 2024, price has witnessed a Bull Run to make an all time high of 7940. Price has given almost 60% returned from its lower level as Bulls were having full control over the price.In the last 5-10 days price has moved in the range forming Descending Triangle Pattern and today with high volume price has breached the Consolidation Phase and moving at new all time high level we can see further upside from here.
The Stochastics Oscillator is moving in an upward trend along with an increase in the volume indicating further upside movement with limited downside risk. Hence one can buy at current level and more at dips of 7500 with stop loss of 7000 on weekly closing basis and upside can be seen till 9500-10500 in the next 10-12 months.
Sobha
From the low around 1171 in Mar 2024, price has given a sharp upside move to make an all time high of 2155. Price has given almost 84% returns from its lower level as buyers were having the upper hand over bears.
Higher Top Higher Bottom pattern was also formed during this rally. In the last four months after making double top around higher level price has witnessed some profit booking to test the previous bottom levels of 1650. Stock is currently moving around the support level of 1650 and if these levels are intact then we can see some pullback from here.
For the long term, stock looks good and can be bought at every dip. The Stochastics Oscillator is moving in an overbought zone and rebound are on cards. Hence one can buy at current level and more at dips of 1680 with stop loss of 1600 on weekly closing basis and upside can be seen till 1875-2050 in the coming 10-12 months.
SpiceJet
After making double bottom around 46 in July 2024, price has witnessed a Bull Run to make the 3 years high of 80. Price has given almost 74% returned from its lower level as Bulls were having full control over the price.
The high price has given some correction as it retraced almost 53% of previous rally to make low around 56 odd levels. For the past 5-10 days stock is currently moving in the range of 56-69, breakout on either side would give further 20-25% move.
As the stock trades with low volume on a daily basis and their business is not up to mark, we would recommend avoiding this stock and can go for other stocks. HenceI would recommend avoiding this stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)