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Indian market snapped 2-day losing streak on Friday and closed with gains of nearly 3 per cent. The S&P BSE Sensex rose more than 1,500 points while the Nifty50 closed above 16,200 levels.

On the sectoral front, buying was seen in realty, metals, capital goods, healthcare, and energy stocks. The S&P BSE Mid-cap index rose nearly 2 per cent while the S&P BSE Small-cap index ended with gains of 2.1 per cent.

Stocks that were in focus include names like

which rose nearly 2 per cent, that ended with gains of over 17 per cent, and that added 5 per cent on Friday.

Here’s what Santosh Meena, Head of Research, recommends investors should do with these stocks when the market resumes trading today:

ITC: Buy
ITC has been a marked outperformer amid weak market sentiment in the week gone by. It continued its bullish momentum followed by a breakout from a bullish flag formation.

The pattern suggests a target of Rs 310-320 whereas Rs 300 will be a psychological hurdle. On the downside, Rs 273-267 will act as an immediate demand zone.

Momentum indicators are positively poised and are still well below the overbought zone.

Welspun Corp: Buy
The counter was moving in upsloping channel formation and on Friday it has broken out on the upside.

A breakout from the neckline of the channel suggests bullish momentum where Rs 275-295 could be immediate target levels. On the downside, the previous swing high of Rs 221 will act as an immediate support level.

Adani Power: Avoid
The counter is continuing its norward journey without any disturbance where recently it has witnessed a breakout from a bullish flag formation that may take the stock towards Rs 350-370 level.

However, most of the momentum indicators are in overbought territory therefore risk-reward is not favorable.

(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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