Stocks that were in focus included names like CG Power, which jumped nearly 1%, JK Lakshmi, which fell 3%, and Metro Brands, whose shares declined 0.4% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
CG Power
The stock has broken out of an upward-sloping channel on a longer time frame, accompanied by robust trading volume. Additionally, it has recently broken out of a prolonged consolidation phase and has found support near its previous breakout level of Rs 500. Its current trading position above key moving averages adds to its attractiveness.
Key technical indicators, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), are showing bullish signals. The MACD indicator has experienced an upward centerline crossover, while the RSI, a momentum indicator, is indicating positive momentum.
Looking ahead, resistance levels are seen at Rs. 550, with potential for further upside movement towards Rs. 580 and beyond in the short to long term. On the downside, Rs. 490 is seen as a critical support level during any potential pullbacks.JK Lakshmi:
The counter has shown a profit booking from Rs. 1000 levels and retested it 200-DMA at around Rs 770 levels. Now it has bounced back from 200-DMA and moved towards 50-DMA at around Rs 900. The structure of the counter looks distorted as it is trading below all its important moving averages, which confirms a bearish trend. However, it has a strong base at around the Rs 770–780 zone, while on the upside, Rs 900 will act as a resistance level; above this, we can expect a long move towards Rs 960.
The momentum indicator RSI (relative strength index) is also negatively poised, whereas MACD (moving average convergence divergence) is supporting the downtrend. This suggests that the indices may continue to fall in the near term.
Metro Brands
It is forming a series of lower highs and lower lows, indicating a negative bias. The structure of the counter looks distorted as it is trading below all its important moving averages, which confirms a bearish trend.
However, it has a strong base at around the Rs 980-1000 zone, while on the upside, Rs 1160 will act as a resistance level; above this, we can expect a long move towards Rs 1220.
The momentum indicator RSI (relative strength index) is also negatively poised, whereas MACD (moving average convergence divergence) is supporting the downtrend. This suggests that the indices may continue to fall in the near term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)