Big Movers on D-Street: What should investors do with IOB, Rites, and UPL?

Share indices ended lower on Monday, tracking the weakness in Asian markets, but there were several individual stocks in the market that were in action and public sector stocks were among them.

The benchmark Nifty 50 ended 0.4% down at 21771.70 points, and the Sensex closed 0.5% lower at 71731.42 points. On the other hand, the Nifty PSE index closed 2% higher at 9189.20 points.

Shares of Indian Overseas Bank closed 12% higher at Rs 62.90, whereas Rites closed 7% at Rs 748. On the contrary, shares of UPL ended 11% down at Rs 475.40 on disappointing quarterly earnings.

Avdhut Bagkar, derivatives and technical analyst at StoxBox shares his view on the stocks and how one can trade in the coming session.

Indian Overseas Bank

The stock has seen fresh upside by hitting a new 52-week high on robust volumes. Such movements indicate a resilient trend in place, and further upside is inevitable. While the immediate support of Rs 50 appears to be a long way from current levels, the bias remains favourable with the “buy on dips” strategy. The counter is heading towards Rs 80-85 levels.

Rites

To breakout on the upside, the stock must deliver a strong close over Rs 775 mark, which is presently acting as a crucial hurdle. When that occurs, a move towards Rs 825-850 cannot be ruled out. On the downside, Rs 650-700 becomes the buying zone given the current sharp momentum.

UPL

The price action clearly denotes an “avoid” stance for the counter, as the “Lower Low, Lower High” pattern continues to dominate the bulls. The next support falls at Rs 400, where the stock appears to be headed. The hurdle of Rs 525, followed by Rs 625 needs to be conquered to recoup the losing sentiment.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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