Big movers on D-Street: What should investors do with Bajaj Auto, Restaurant Brands and SpiceJet?

Domestic indices Sensex and Nifty scaled fresh lifetime highs on Friday, propelled by a rally in global markets and fresh foreign capital inflows.

Stocks that were in focus included names like Bajaj Auto, which rose 6.29%, Restaurant Brands, which gained 6.36%, and SpiceJet, whose shares jumped 0.42% on Friday.

Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.

Bajaj Auto – Buy
The counter has witnessed a breakout of a cup and handle formation with strong volume on the daily chart, while on the weekly chart, it has given a breakout of a triangle formation. The structure of the counter looks lucrative for long-term investors, as it is trading above all the 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 upside, Rs 5300 is the neckline and an immediate hurdle; above this, we can expect a move towards Rs 5400. On the downside, Rs 4950 is a strong demand zone at any pullback.

Restaurant Brands – Buy
The counter on the weekly chart has experienced a breakout characterized by an inverse head and shoulders formation. This breakout was accompanied by robust trading volume and a subsequent breakout of a triangle formation.Furthermore, it is currently trading above its key moving averages, and both the MACD (moving average convergence divergence) and RSI (relative strength index) momentum indicators are displaying positive signals.

Looking ahead, the immediate resistance level is at Rs 140, and if this level is surpassed, there is potential for a move towards Rs 150 or higher. On the downside, Rs 120 serves as a strong support zone during any potential correction.

SpiceJet – Avoid
The counter is moving in a downward-moving channel formation on the daily chart. It has broken their neckline support at 30.50, which was their all-time low level.

The overall structure is distorted as it trades below all its important moving averages, and the momentum indicators are also negatively poised.

On the downside, Rs 26 is the strong support level, while on the upside, the level of Rs 40 is likely to act as an immediate hurdle.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



Denial of responsibility! My Droll is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
DMCA compliant image

Leave a Comment