Stocks that were in focus included names like BSE, which rose 1.97%, Jubilant Food, which declined 3.84%, and Vodafone Idea, whose shares dropped 0.53% on Thursday.
Here’s what Amol Athawale, Vice-President – Technical Research at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today.
BSE
In this month so far, the stock has rallied nearly 40%. Post 1500 breakout the stock was soaring rapidly. Despite weak market sentiment they held the positive momentum.
The medium term texture of the chart is still positive and likely to continue in the near term. However, in the short-term period, stock is in the overbought zone and profit booking is not ruled out if stock trades below 1700 level.
On the other hand, the above 1700 uptrend rally likely continued up to 1875 and 1935. The short-term structure indicates traders may prefer to place a cautious stance near 1935 resistance level.
Jubilant Food
Last Thursday, the stock opened with a gap down and held the negative momentum throughout the day. After a long time, the stock closed below the 50 day SMA (Simple Moving Average ) and also formed a bearish candle on weekly charts which supports further weakness from the current levels.Technically, as long as the stock is trading below 50 day SMA the weak formation is likely to continue. Below which, they could slip till 490. Further down side may also continue which could drag the stock till 200 day SMA or 480.
Britannia
From the last few weeks, the stock is consistently facing selling pressure at higher levels, after a long correction currently the stock is trading near its 200 day SMA (Simple Moving Average).
Technically, the short-term texture of the stock is still on the weak side but due to temporary oversold conditions, we could see one quick pullback rally from the current levels. For the traders now, 4410 would act as a key support level. Above the same, we could expect the one relief rally till 4650-4700.
On the flip side, below 4410 the selling pressure is likely to accelerate. Below which, the stock could slip till 4350-4310.
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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)