Stocks in focus included Solar Industries, which rose 8.23%; Kotak Bank, which fell 2.49%; and Max Health, whose shares declined 4.46% on Wednesday.
Viral Chheda, Senior Technical Analyst at SSJ Finance and Securities, offers recommendations to investors on these stocks when the market resumes trading today.
Solar Industries
After trading in the range of Rs 6,000-7,400 for two months, the price has broken out on the upside, reaching an all-time high of approximately Rs 11,190. Volumes increased significantly as bullish sentiment drove the price.
It is advisable to refrain from buying at current levels and instead consider purchasing on dips around Rs 10,400-10,000. The Stochastic Oscillator also indicates an overbought condition, reinforcing the suggestion to avoid current purchases. A buy strategy can be implemented with additional purchases at Rs 10,000, setting a stop-loss at Rs 9,500 on a weekly closing basis. The upside potential is projected towards Rs 12,000-13,000 over the next 10-12 months.Kotak Bank
After hitting a low of around Rs 1,543 in May 2024, Kotak’s share price experienced a sharp upside movement, reaching a high of Rs 1,848. This represents nearly a 20% return from its previous low, driven by strong buying activity prevailing over bearish sentiment.
A ‘Higher Top Higher Bottom’ pattern has emerged, but after forming a Double Top around 1,848, the price has seen profit booking, currently trading around Rs 1,740.Once these levels are breached, a significant price surge can be expected, potentially pushing it upwards to around 1930-2050 levels. On the downside, it finds support in the Rs 1,720-1,700 range. For long-term investors, the stock appears promising and can be accumulated on every dip. However, the Stochastic Oscillator shows a downward trend, suggesting the possibility of minor corrections.
Hence one can buy around Rs 1,720 and more at dips of Rs 1,690 with a stop loss of Rs 1,640 on the weekly closing basis and an upside can be seen till Rs 1,900-2,050 in 8-10 months.
Max Health
After bottoming out at around Rs 511 in August 2023, the price surged sharply to reach an all-time high of Rs 910. This marks an impressive 78% increase from its low, driven by bullish momentum. A ‘Higher Top Higher Bottom’ pattern has formed, with the price consolidating between Rs 700-900 from February 2024 to June 2024. Upon breaking this range, a sharp uptrend ensued, pushing the price to around Rs 980.
Given the current all-time high levels, profit booking may occur, potentially bringing the price to the range of Rs 875-825. Despite short-term fluctuations, the stock appears favorable for long-term investment and can be accumulated during dips.
The Stochastic Oscillator is in the overbought zone, suggesting a possible correction from current levels. Therefore, buying around Rs 875, and further at Rs 825 with a stop loss set at Rs 800 on a weekly closing basis, is advisable. Upside potential is anticipated towards Rs 1,000-1,100 over the next 10-12 months.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)