Stocks that were in focus included names like HCL Tech, which rose 0.48%, Delta Corp, which gained 1.74%, and Trident, whose shares dropped 2.56% on Tuesday.
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.
HCL Tech- Buy
After a short-term correction, the stock took the support near the 50 day SMA (Simple Moving Average) or 1220 and reversed sharply. Post reversal, the stock comfortably trading above 20 day SMA which is largely positive.
Unless it is trading below 1247, positional traders retain an optimistic stance and look for a target 1300-1335 fresh buying can be considered now and on dips, if any between 1275 and 1260 levels with a stop loss below 1247.
HDFC Life – Buy
After a short-term correction eventually, the stock took the support near 620 and reversed. Post reversal, currently, the stock is trading near 50 and 20 day SMA (Simple Moving Average).
In addition, the stock has formed a promising reversal formation on daily and weekly charts that also supports further uptrend from the current levels. For the Positional traders now, 627 would be the key support level to watch out.If it succeeds to trade above the same, then it could retest the level of 665-670. On the flip side, below 627 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.
Trident – Sell
From last few weeks, the stock consistently facing selling pressure at higher levels, after a long correction currently the stock is trading near a 50 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, 37 or 50 day SMA would act as a trend decider level. Below the same, the stock could slip till 35.5 to 35. On the flip side, above 37 it could bounce back till 39-40.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)