Stocks that were in focus included names like Century Textiles, which rose 0.84%, HAL, which jumped 3.30%, and Tata Steel, whose shares declined 0.8% 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.
Century Textiles – Buy
The counter has witnessed a breakout of a triangle formation on the daily chart with strong volume. It is in a classical upward move, and the overall structure of the counter is very lucrative, as it is trading above all its important moving averages and is also forming higher highs and higher lows.
The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.
On the higher side, Rs 1500 is acting as an important psychological level; above this, we can expect the level of Rs. 1640+ in the near-short term, while on the lower side, Rs. 1260 will act as a major support during any correction. Going forward, the bullish trend is expected to continue, and investors can benefit from buying at current levels and selling at higher levels
HAL – Buy
The market counter is currently exhibiting a classical move, marked by a significant breakout from a prolonged consolidation pattern on the daily chart. Furthermore, the weekly chart shows a bullish flag formation breakout accompanied by robust trading volume.The counter’s overall structure appears highly favorable, trading above crucial moving averages. For potential investors, initiating a position at the present level of Rs 2998 is advisable, with a suggested stop loss at 2700. The anticipated target for this position is Rs. 3294/3594 in the near to short term.
Supporting the current market strength is the MACD (moving average convergence divergence) indicator, while the RSI (relative strength index) momentum indicator also reflects positive positioning. These factors contribute to the overall attractiveness of the counter for potential investment.
Tata Steel – Buy
The structure of the counter looks attractive for short- to long-term investors as it is following and supporting 20-DMA, while on the higher levels, it is facing resistance at around Rs 140. The counter is forming a rising channel formation in the daily timeframe. Presently, it is touching the lower level of the channel at 20-DMA.
A robust support level is observed at Rs 132 on the downside, while Rs 142 serves as a formidable resistance. A breakthrough above this resistance could potentially trigger a significant upward movement, targeting the Rs 150 level.
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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)
