Sector-wise, selling was seen in metals, realty, banks, and telecom while buying in utilities and power stocks.
Stocks that were in focus on Wednesday include names like Blue Star that gained over 13% to hit a new high, SJVN that rose nearly 7%, and Alembic Pharma which hit a fresh 52-week high, pared gains and closed with a loss of over 1%.
We have collated a list of these three stocks that have either hit a fresh 52-week high, or all-time high or saw a volume or a price breakout.
We spoke to analyst Sanket Thakar on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what the CMT and founder of Alpha Bot Capital has to say:
Blue Star
Blue Star has witnessed a strong breakout from the resistance level of Rs 835 and has directly reached the resistance level of Rs 915 with a huge volume spike.
Though it is at an all-time high level, there are multiple resistances on top like Trendline, overbought RSI & extensions.
If the stock fails to continue to hold above Rs 915, it will reverse to the level of Rs 845 on the downside. For it to continue the uptrend, it must break the resistance of Rs 945 on the closing basis, which will lead it to Rs 1003 & Rs 1044 levels.
In the current scenario, profit booking looks like the best option and fresh long can only be created above the resistance break.
SJVN
SJVN has recently completed its Flag breakout rally after going into all-time high levels. The overall trend remains bullish but for short-term traders, fresh long entries at the current spot look unfavorable because the risk is high compared to the reward.
This is because of overbought RSI and extension resistance. Planning exit on longs looks like a better decision here at two price levels, one is Rs 81.5 which is the CMP, and the other at Rs 88 levels. Immediate short-term support remains at Rs 70 levels.
ETMarkets.comAlembic Pharma
Alembic Pharma has achieved its 1st target of a falling channel pattern at the price of Rs 805. It hit another trend line resistance at Rs 825 from where selling/profit booking has taken place.
It is also forming a bearish candlestick pattern called shooting star, which was confirmed on September 20 closing. This again will be a sign of more profit booking to be followed, taking the price lower.
Once it breaks the resistance and closes above Rs 825, it is expected to hit 900, but in the current scenario, it could fall back to its nearest support of Rs 750.
ETMarkets.com(Analyst Disclaimer: I’m not a SEBI registered advisor, please consult your financial advisor before investing any money. All of the above observations are shared for educational purposes only. Views mentioned are of the Analyst.)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)