Sensex rallied over 400 points to settle at an over six-month high, reacting to positive macro data and firm global trends. Meanwhile, Nifty closed above the 18,700 mark.
Among the sectors, realty jumped 2.94% and consumer durables climbed 1.8%, FMCG was up 1.38%, while services emerged as the only laggard.
Stocks that were in focus include names like Olectra Greentech, which gained 7.62%, ZEE, which was down 0.77% and MRF, whose shares rose 0.94% on Tuesday.
Here’s what Viral Chheda, Sr Technical Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today:
Olectra – Buy on Dips
After consolidating in the range of Rs 580-720 odd levels for almost three months, the price has witnessed a sharp bull run to breach the range and make a 52-week high of Rs 917 levels.
A return of almost 25% from a breakout level of Rs 720 indicates bulls were having the upper hand on the price.
Volumes were also trading at their highest level, indicating higher levels in the short term. The price is currently trading near its all-time high level of Rs 940 where it can face resistance and some profit booking can be seen to take the support around Rs 820 odd levels. A fresh upside rally can be seen thereafter to make new highs around Rs 1050-1200 odd levels.
The Stochastics Oscillator is also moving in an upward trend along with an increase in volume, indicating an upward movement with limited downside risk.
Hence to make a fresh entry one can wait for some dips around Rs 820 and more at Rs 760 with an SL of Rs 700 on a weekly closing basis and the upside can see a level of Rs 1050 to Rs 1200 in the next 8-10 months.
ZEE – Sell
On the weekly chart, from a high of Rs 375 in Dec 2021, the price has seen a sharp correction to make a low of Rs 176 odd levels.
During this downfall, the Lower Top Lower Bottom pattern was formed. Bears were having the upper hand during this fall as we saw almost 60% going off in the span of 15 months.
Currently, the price is moving sideways and the selling pressure is intact. We can see further downside from here.
Immediate support is near Rs 176 below which the downside level can be seen till Rs 160 to Rs 130 odd levels. The Stochastics Oscillator is moving in a downward trend along with an increase in volume, indicating further downside from here.
Hence, one can sell at the current level and more at a rise of Rs 201, keeping SL of Rs 210 on a weekly closing basis and the downside can be seen till Rs 160-130 in the next 6-8 months.
MRF – Buy
On the daily chart, after making double bottom around Rs 82,000 in March, the price has witnessed a sharp bull run to make an all-time high of Rs 99000 odd levels.
From May to June, the price has moved in the range of Rs 95000 to Rs 99000 and in this week, with high volumes, the price has breached the pattern on the higher side to make an all-time high of Rs 1,00,000. The closing at a higher level triggers further upside from here.
With the rise in volume at a higher level, we can predict that bulls are having full control over the price.
The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating an upward movement with limited downside risk. Hence one can buy at the current level and more at dips of Rs 97000 with an SL of Rs 95000 on a weekly closing basis and the upside can see a level of Rs 107500 to Rs 112500 in the next 6-8 months.
(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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