Stocks that were in focus included names like Tanla Platforms, which rose 4%, YES Bank, which gained 1.76%, and Tata Communications, whose shares declined 3.82% 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.
Tanla Platforms
The counter has witnessed a breakout of a long consolidation on the weekly chart with strong volume. The structure of the counter looks good, as it is trading above all its important moving averages.
In terms of potential price levels, immediate resistance is anticipated at Rs 1150. Should this level be surpassed, a substantial upward movement towards 1200+ appears probable within the near future. Conversely, any corrective moves might find support around the Rs 985 mark.
Notably, the RSI (relative strength index) momentum indicator is favorably positioned, while the MACD (moving average convergence divergence) reinforces the current market strength.
YES Bank
The primary structure of the counter is continuously following the downtrend. However, it finds a base at around Rs. 17, which comes at 200 DMA. The overall structure of the counter is distorted, but it is trading above important moving averages (9, 20, 100, and 200-DMA), which can give a short-term bounce back from current levels.The momentum indicator RSI (relative strength index) is also negatively poised, whereas MACD (moving average convergence divergence) supports the downtrend.
For long-term investors, it is suggested to avoid taking new positions, while for risky traders, one can take positions at CMP 17.30 with a stop-loss of Rs 16.40 for the target of Rs 19/21.
Tata Communications
The stock has broken down from a rounding top and a head and shoulders pattern on the daily chart with strong volume. Rounding tops are found at the end of extended upward trends and may signify a reversal in long-term price movements. It is also trading below its important moving averages (9, 20, and 50-DMA).
However, it has a demand zone near Rs 1670–1690 comes at 100-DMA, but if it slips below 1670, then we can expect a fall to Rs. 1500 (200-DMA). On the upside, 1800 is an immediately susceptible area.
The momentum indicator RSI (relative strength index) is also negatively poised, whereas MACD (moving average convergence divergence) supports the downtrend. This suggests that the stock may continue to fall in the near term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)