Stocks that were in focus included names like Piramal Enterprises, which fell 0.21%, Cochin Shipyard, which rose 6.32%, and Hindustan Copper, whose shares jumped 10.6% on Thursday.
Here’s what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Piramal Enterprises – Avoid
The pattern analysis on the daily outlook shows that the price action is trading amidst a distribution pattern. With the price action sloped down below its former support near 903, it has also observed an underperformance in terms of relative strength compared to the benchmark index. Hence, we recommend avoiding PEL at the current price.
Cochin Shipyard – Buy
The pattern analysis on the daily timeframe shows that the price has staged a bullish breakout from the rounding bottom pattern formed near the life highs.
The pattern complemented with a relatively higher EPS and price strength indicates smart hand participation which further validates the breakout. We reiterate a buy on Cochin Shipyard for the target of 1494 and stop loss at 1199.
Hindustan Copper – Buy
The price action continued to trend higher following a bullish breakout from the cup and handle on the weekly timeframe. The price action has seen 8 consecutive higher weekly closings on an increasing volume trend which exhibits strength in the trend.As the price action attempts to break through the immediate resistance off the 200% retracement level of its prior intermediate swing high and low, we reckon a buy on Hindustan Copper for the target of 234 with a stop loss at 201.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)