Stocks that were in focus included names like Berger Paints, which rose 6.85%, Glenmark Pharma, which fell 2.98%, and Union Bank, whose shares jumped 5.39% on Thursday.
Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Berger Paints – Buy
The counter is in a classical uptrend and witnessed a breakout of an upward-sloping channel on the daily chart with strong volume. The overall structure looks lucrative as it trades above its all-important moving averages.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the upside, 680 is a susceptible level; above this, we can expect a run-up towards 700+ levels in the near term. On the downside, Rs 620 is the critical level during any correction.
Glenmark Pharma – Buy for long term
The counter has witnessed a breakout of an inverse head and shoulders formation on the weekly chart with huge volume, while on the daily chart, it is making higher highs and higher lows formations.For long-term investors, counter is providing a buying opportunity as it is trading above all its important moving averages. On the higher side, 880 is a susceptible level; above this, we can expect a run-up towards 920+ levels in the near term.
On the downside, Rs 730 is the critical level during any correction.
Union Bank – Buy
On the weekly chart, the stock has experienced a breakout from a cup and handle formation. Concurrently, the daily chart shows a breakout from a triangle formation, accompanied by robust trading volume.
It has retested its previous breakout level at around Rs 97 and started its new leg of rally with good volume on the daily chart. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the higher side, 105 is the susceptible level; above this, Rs 120 is the near-term target for the counter with a stop-loss of Rs 96.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)