Stocks that were in focus include names like Indian Bank, which fell 1.33%, Sun Pharma, which jumped 1.5%, and Hindustan Zinc, whose shares rose 4% on Wednesday.
Here’s what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.
Indian Bank
The stock is trading around its crucial resistance mark of 580.00 on its daily charts. With volumes being almost 1.75 times its average (30-day) volume and the RSI (14) around 62, there is good momentum in the stock. A breakout above 580.00 could trigger a strong rally towards the 600-620 levels.
However, if the stock fails to cross that mark, we might see some profit booking, pulling the stock back towards the 540.00-550.00 levels.
Sun Pharma
The stock is trading in a narrow range of 90 points between 1475.00 and 1565.00. Based on its daily charts, we expect the stock to continue moving within this range. Minor support is placed around the 1505.00 level, below which the next support would be at 1475.00.Overall, until there is a breakout above or a breakdown below these levels, no significant movement is expected. If the stock manages to break out above 1565, it can be bought with a strict stop-loss at 1540 for targets of 1600 and 1625.
Hindustan Zinc
After rallying nearly 80% so far in the month of May, the stock is trading above its immediate support of 680.00. As long as the stock remains above this mark, there is no cause for concern.
A break below 680.00 would indicate weakness, potentially pulling the stock towards 610.00 and 600.00 due to profit booking. However, given the current situation, the overall trend is positive.
Therefore, we advise traders to maintain a trailing stop-loss at the 680 mark for targets of 825 and 850.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)