Stocks that were in focus include names like Siemens India, which rose 6.33%, Oil India, which jumped 1.98%, and LIC, whose shares increased 6.82% on Wednesday.
Here’s what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.
Siemens India
The stock is trading at an all-time high of 7240.00, showing strong momentum. However, on its monthly time frame charts, the stock has reached an RSI of 89, indicating overbought conditions.
According to multiple technical indicators and momentum oscillators, the upside appears limited from current levels, and the stock is expected to face some profit booking at higher levels.It is likely to struggle at these higher levels, and it is advisable to book profits at the current market price.Oil India
The stock has reached an RSI of 90.17 on its monthly time frame charts, indicating extreme overbought conditions. The stock is also experiencing continuous wick rejections at higher levels around 630-635, suggesting that it may fall towards 580-600 as selling pressure increases.The stock is expected to face significant resistance at the 700 mark, and we advise traders and investors to book profits at this point.
LIC
The stock has achieved a strong breakout from its triangular consolidation pattern and has successfully closed above its breakout level of 985 on the daily charts.
With the RSI upticking to around 57, the stock is showing signs of strong momentum, and this rally is expected to continue towards 1075 and 1100. A strict stop-loss can be set at 950 for all active buys in the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)