Indian market remained closed on Monday on account of a public holiday.
Sectorally, buying was seen in telecom, capital goods, utilities, public sector and power stocks while selling was seen in consumer durables.
Stocks that were in focus include names like Syngene International which rose more than 4%, EIH rallied nearly 10% and REC closed with gains of over 5% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd recommends investors should do with these stocks when the market resumes trading today:
Syngene International: Buy
The counter has witnessed a breakout of a symmetrical triangle formation. On a weekly chart, there is a breakout of the flag formation with strong volume.
The breakout level of 650 is now the near-term base for the stock. The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the higher side, Rs. 700 is acting as an important psychological level; above this, we can expect a level of Rs. 750+ in the near-short term, while on the lower side, it has already given a big move in the last 2 trading days from the lower levels.
The first support will come at around Rs. 650 levels, and below this, Rs. 630 will be the next support level during any correction.
REC: Buy
The counter has broken out of a symmetrical triangular formation with significant volume, signaling a typical upswing. The stock’s overall structure appears profitable given that it is now trading above its crucial moving averages.
On the shorter time frame, there is a multi-month breakout, which suggests much more upside potential in this counter.
The momentum indicator RSI is trading above the 60 mark with a positive bias, whereas MACD has already witnessed a centerline crossover.
On the upside, 140 will be an immediate hurdle, but 150+ looks like an imminent target in the near-to-short term. On the downside, the 125 level is a strong support level in any correction.
EIH: BUY
The counter is in a classical uptrend, as it has witnessed a breakout of a triangle formation. It has retested its previous breakout level at Rs. 150 and started its new upside leg with good volume on the daily chart.
The trend-line breakout level of 170 has become the near-term base. On the higher side, 200 is the susceptible level; above this, Rs. 220+ is the near-term target for the counter with a stop-loss of Rs. 167.
The momentum indicator is also positively poised.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)