Stocks that were in focus include names like PNB Housing Finance, which rose 3.41%, Trident, which gained 11.42%, and Tanla Platforms, whose shares declined 5.50% on Monday.
Here’s what Riches Vanara, Technical And Derivatives Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today:
PNB Housing Finance – Buy
The stock is coming out of a rounding bottom pattern on weekly charts and has relatively outperformed the head index week-on-week. The price action and momentum indicators like MACD and 14-period RSI are also showing a bullish trend.
The stock is a buy candidate at CMP and around 645 for targets of 680 and 710 with a stop below 618.
Trident – Buy
A breakout from a descending channel can be visible on a weekly time frame. However, confirmation on a closing basis will be awaited. The big volume bar from short-term EMA support and the MACD indicator getting into the bull zone calls for a trend reversal.
Also, the consolidation zone of 16 weeks has been taken out. Hence, we recommend buying at CMP and around 34.20 for targets of 36.20 and 38 with a stop below 33.
Tanla Platforms – Sell
The stock has seen facing resistance from its down-sloping trendline drawn from the recent peak. On the daily time frame, it has also violated the major support zone of 1050-30 which is a bearish sign.
The momentum indicators MACD and 14-period RSI are also in bearish mode and complimenting the price action.
It is a sell call at CMP and around 1050 for targets of 1000 and 970 with a stop above 1074.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)