Indian market closed in the green on Friday for the third consecutive day. The S&P BSE Sensex rallied more than 700 points while Nifty50 closed above 17,100 levels.
Sectorally, the rally was seen in metals, energy, oil & gas, IT, and consumer durables.
Stocks that were in focus include
which hit a fresh 52-week high,
which rose more than 8 per cent to a fresh record high, and
which added more than 7 per cent.
Here’s what Santosh Meena, Head of Research, recommends investors should do with these stocks when the market resumes trading today:
TVS Motor: Buy | Support placed at Rs 800
The counter has seen strong traction from the past couple of trading sessions that pushed the stock above all its major exponential moving averages on the daily chart.
The stock has witnessed a ‘Cup & handle’ pattern breakout on the weekly chart and retested the breakout, which construes a bullish signal on the counter.
The stock has the potential to cross its psychological level of Rs 1000 in the near term. If it breaks Rs 1000 then we can expect Rs 1200 as the next susceptible level. On the downside, Rs 800 is the major support level.
SBI Life: Buy
The stock has given a breakout from a bullish inverse head and shoulder formation with the surge in volume on the daily chart. The stock has also been forming higher top and bottom formations on the weekly chart.
The pattern suggests an immediate target of Rs 1350, while it has the potential to move further upside till the Rs 1400 level. On the downside, Rs 1170 will be an immediate support level.
MACD (Moving average convergence divergence) supports the current strength whereas momentum indicator RSI (relative strength index) is also positively poised.
Tata Steel: Buy | Support placed at Rs 88-94
The counter has given a breakout of a rounding button formation on the daily chart. The overall structure of the counter looks lucrative, as it is trading above 9, 20, and 50-SMA averages.
On the upside, Rs 110 is an immediate resistance zone; above this, we can expect a Rs 130+ level in the near term. On the downside, if slips below the Rs 100 level, then Rs 94/88 are the next support levels.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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