Stocks that were in focus included names like Paytm, which fell 3.08%, LIC, which rose 9.7%, and Balrampur Chini Mills, whose shares declined 2% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Paytm
The counter has witnessed a breakout of a triangle formation, which is generally considered a bullish signal. It retested its previous breakout levels. It has found a strong base at around Rs 870, and it is trading above all important moving averages. The structure of the counter becomes so lucrative for long-term investors.
On the upside, Rs 950 is the neckline and an immediate hurdle; above this, we can expect a move towards Rs 1000+. On the downside, a cluster of moving averages at around Rs 850 is a strong demand zone during any correction.
LIC
It has witnessed a breakout of long trend-line resistance on the weekly chart with strong volume, while on the daily chart it has broken an inverse and shoulders formation. The structure of the counter looks lucrative, as it is trading above all its important moving averages.
On the higher side, Rs 700 will act as a psychological resistance level; above this, we can expect a big move till 740+ in the shorter time frame, while on the downside, Rs 640 is the immediate support, whereas Rs 600 will be the next important support during any correction at 200-DMA.Balrampur Chini Mills
The counter has witnessed a breakout of a long consolidation on the weekly chart with strong volume. The structure of the counter looks good, as it is trading above all its important moving averages.
On the upside, Rs 500 is an immediate hurdle; above this, we can expect a move towards Rs 550+. On the downside, a cluster of moving averages at around Rs 400 is a strong demand zone during any correction. Notably, the RSI (relative strength index) momentum indicator is favorably positioned, while the MACD (moving average convergence divergence) is reinforcing the current market strength.
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(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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