Stocks that were in focus included names like RVNL, which fell 8.06%, BEML, which dropped 7.69%, and Swan Energy, whose shares jumped 6.95% on Friday.
Benchmark indices closed higher in a volatile trade on Friday. The 30-share Sensex climbed 167 points to settle at 71,595 and the broader Nifty rose 64 points to 21,782.
Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
After a spectacular move from Rs 40 to Rs 199 in the years 2022–2024, we have seen some profit booking at the higher levels and retested its last breakout levels at Rs 240–Rs 250. The structure of the counter looks good for short- to long-term investors, as it is trading above its important moving averages.
It has a psychological resistance level of Rs 300. If the price manages to break above the Rs 300 resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of Rs 320 or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 220.
The counter has formed a shooting star candlestick pattern, which indicates a potential price top and reversal. The shooting star candle is most effective when it forms after a series of three or more consecutive rising candles with higher highs. It has a strong base at 50-DMA, or around Rs 3000.
On the upside, 3600 is an immediate resistance where it may see some pause, but above this, it is likely to head towards 3800 levels. On the downside, Rs 3000 is major support for any correction. While 2750 is the next critical demand zone, MACD and RSI are supporting the strength of the current movement.
The counter is in the classical move, as it has witnessed a breakout of bullish flag formation on the daily chart, and on the weekly chart, it has given a breakout of symmetrical triangle formation with a strong volume.
The structure of the counter is very lucrative, as it trades above its all-important moving averages. An investor can take a position at the current level of Rs 708 with a stop loss of 650 for the target of Rs 770/824 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)
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