Stocks that were in focus include names like Bata India, which rose 5.58%, JSW Energy, which declined 4.01%, and India Cements, whose shares dropped 2.76% on Thursday.
Here’s what Amol Athawale, VP – Technical Research at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:
Bata India – Buy
The stock rallied over 5% on August 17, 2023. After a positive opening, the stock successfully cleared the 50-day SMA (Simple Moving Average) with a strong volume activity.
Despite weak market conditions, Bata India maintained its strong momentum throughout the day. In the short-term period, the stock has seen strong price volume reversal formation. The texture of the pattern suggests positive sentiment is likely to continue in the near future.
For the trend-following traders, 1700 or 20-day SMA would be the sacrosanct level; trading above the same, we can expect an uptrend continuation wave up to 1800-1820. On the flip side, below 1700 uptrend would be vulnerable.
JSW Energy – Rangebound trade
After a strong uptrend rally on Thursday, the stock witnessed profit booking at higher levels. It also formed bearish candles on daily charts which indicated temporary weakness.
However, the medium-term texture of the chart is still on the positive side. We are of the view that due to temporary overbought conditions, there can be some rangebound activity in the near future.
For the traders, 370-375 would be the immediate profitbooking areas while 345-340 could act as a key support zone. On the flip side, below 340 traders may prefer to exit out from the trading long positions.
India Cements – Buy
After a promising price volume uptrend rally, the stock witnessed profit booking at a higher level. However, the medium-term texture of the stock is still on the positive side.
We are of the view that, after completing one leg of correction the stock is trading near an important retracement support level. The texture suggests a strong possibility of a fresh uptrend rally from the current levels.
For the positional traders, 234 would be the sacrosanct support level; if the stock succeeded to trade above the same then it could retest the level of 255.
Further upside may also continue which could lift the stock till 260-263. On the other side, below 234 the selling pressure is likely to accelerate.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)