Sectorally, buying was seen in IT, realty, banks, and autos while selling was visible in healthcare, consumer durables, and public sector stocks.
Stocks that were in focus include names like Ramco Cements which was up nearly 8%, Gland Pharma which fell 20%, and Adani Total Gas which rose 3% on Friday.
Here’s what Pravesh Gour, Sr. Technical Analyst, Swastika Investmart Ltd recommends investors should do with these stocks when the market resumes trading today:
The Ramco Cements: Buy
The counter has witnessed a breakout from an inverse head and shoulders formation on the longer timeframe with strong volume. It suggests a potential bullish reversal in the counter.
The strong volume indicates increased buying interest and confirms the significance of the breakout. It has also given a breakout of upward channel formation on the daily chart.
MACD (moving average convergence divergence) is supporting the current strength, while the momentum indicator RSI (relative strength index) is also positively poised.
It faces a psychological resistance at Rs 880. Psychological levels are often significant price levels that can influence market sentiment and act as barriers for further price advancement.
If the price manages to break above the Rs 880 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 900 or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 800. Support levels are price levels where buying interest typically emerges and can potentially halt a declining price trend.
Gland Pharma: Avoid
The counter has witnessed a breakdown of a long consolidation formation on the daily chart, which suggests a bearish development in the price action.
The overall structure is distorted as it trades below its all-important moving averages, which reinforces the bearish sentiment.
On the downside, Rs 1000 is the psychological support level where we can expect a bounceback, while on the upside, the level of Rs 1200 is likely to act as an immediate hurdle.
Adani Gas: Risky Buy
The counter has experienced a significant correction from Rs 4000 to Rs 650 levels. This suggests a substantial decline in price over a given period.
The overall structure is distorted as it trades below its all-important moving averages, but it has a demand zone near 650. On the upside, 850 is an immediate susceptible area.
If the price manages to break above this resistance level with conviction, it indicates a potential shift in market sentiment and opens up the possibility of a run-up towards 1000+ levels in the near term.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)