Indian markets remained in the green for the fourth consecutive day on Tuesday. The S&P BSE Sensex rose over 70 points while the Nifty50 closed above 17700 points. By sector, buying was in energy, utilities, oil and gas and the public sector, while selling was evident in commodity stocks, healthcare and IT.
Well-watched stocks included names like Zomato, which rose more than 3%, Anupam Rasayan India, which rose more than 4%, and ITC, which closed with a gain of 0.4% after hitting an all-time high from 413,000. 45 Tuesday.
Here’s what Viral Chheda, technical analyst, SSJ Finance & Securities says investors should do about these stocks as trading resumes today:
1. Zomato: Buy on dips
After making above 75.5 in November 2022, the stock made a significant correction as it performed below 44 odd levels on daily charts. Currently, the stock forms a Lower Top Lower Bottom Model. At the low of 44, the price found previous low support and from there we saw a reversal that peaked at 54 odd levels.
From February 2023 to mid-April, the stock moved to 49-54 and after consolidating on volume, the price broke the trend on the higher side and continued its uptrend to make above 60.5. The stock is currently trading above the 200-DMA, which is a positive bullish sign. The RSI oscillator is also moving in a bullish trend along with the increase in volume, pointing to further bullishness from here. Therefore, at current levels and above, one can buy on dips of 53 with a stop loss of 48 on a weekly closing basis. On the bright side, we may see 75-90 in the next 10 or 12 months.
2. Anupam Rasayan: Partial Benefit Book
We saw the stock gain support from its previous lows of around 570 and we saw a strong rally from there and it is now trading at an all-time high of 1118 on the daily charts. Price created the High Top Model on top of the top bottom. Larger volumes can also be seen at its peak.
Since price has accounted for nearly 100% of the returns to the downside, we should avoid buying at the current level and we can take partial gains as further gains can be made from here. The Stochastic Oscillator is also moving into overbought territory. Therefore, one should avoid buying at the current level and wait for a correction to 1000-900 hours before the next rally.
3. ITC: white
On a weekly chart from September 2022 to February 2023, the stock moved in the ranges of 317-355, and when it broke the consolidation level on the high side, the sharp rise in price seemed to hit an all-time high of 393 different levels.
Volumes were very high during this uptrend. In March, the price moved sideways again and formed a flag pattern and while the price did break out, it continued to rise and reached a new high of 411 odd levels. The Stochastic Oscillator is moving in a bullish trend along with an increase in size so we can see further bullishness from here. Therefore, one can buy at current levels and more on dips up to Rs 390 with a stop loss of Rs 370 on a weekly closing basis. On the upside, we expect a level of 470-520 in the next 8-10 months.