Stocks that were in focus include names like Zomato, which gained 12.24%, ITC, which fell 0.98%, and Adani Wilmar, whose shares rose 9.99% 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.
Zomato
The counter is in a strong bullish trend where it has formed a base around Rs 140-150 at 50-DMA and today it has witnessed a breakout of the triangle formation. Stock is trading in a blue sky zone and in the near term, we are expecting 300+ levels.
On the downside, Rs 240 is major support at any correction while 220 is the next critical support level. Momentum indicators are positively poised to support the current strength.
ITC
The structure of the Counter is very lucrative, as it forms a flag formation on the daily chart. But breakout is awaited above 500 levels. If it crosses 500 levels on the daily chart we can expect a big move towards 550. It is trading above its all key moving averages.However, momentum indicators such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are currently in a negative position.
On the upside, Rs 500 is a significant psychological resistance level. If it surpasses this level, we can anticipate a move towards the 550+ levels in the near term. On the downside, Rs 465 serves as the support level.
Adani Wilmar
The counter has formed a strong base near to 310 and starts a new leg of rally towards 500 levels short to long term. The structure of the counter looks good for long term investment , as it is trading above its all key moving averages.
However, momentum indicators such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are currently in a negative position.
On the upside, Rs 400 is a significant psychological resistance level. If it surpasses this level, we can anticipate a move towards the 500+ levels in the near term. On the downside, Rs 310 serves as the support level.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
