Stocks that were in focus included names like RBL Bank, which rose 4.86%, Praj Industries, which fell 11%, and Five-Star Business, whose shares declined 2.85% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
RBL Bank – Bullish
The counter is coming out of a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages.
The pattern suggests an immediate target of Rs 310, while it has the potential to move further upside. On the downside, Rs 245 will act as an immediate support level.
ADX (average directional index) and MACD (moving average convergence divergence) are supporting the current strength, whereas momentum indicator RSI (relative strength index) is also positively poised.
Praj Industries – Negative
The counter was given a massive move from the low of Rs 298 to the higher levels of Rs 650. But from the higher levels, it has shown a profit booking and reached their last breakout level at around Rs 500–505. The structure of the counter is a little bit distorted as it trades below the 20, 50, and 100-day SMA, and the momentum indicators are also negatively poised.On the downside, Rs 500 is the strong support level where we can expect a bounce-back, while on the upside, the level of Rs 580 is likely to act as an immediate hurdle.
Five-Star Business – Negative
The counter has witnessed a breakout of a triangle formation, but from the higher levels, there was a profit booking of Rs 820. The structure of the counter is also distorted, as it is trading below all its important moving averages. However, it has a demand zone near 680–700. On the upside, 820 is an immediate susceptible area; above this, we can expect a run-up towards 880+ levels in the near term.
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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)