Stocks that were in focus included names like Just Dial, which rose 1.82%, HDFC Life, which declined 3.55%, and Wipro, whose shares jumped 6.37% on Monday.
Here’s what Kushal Gandhi, Technical Analysts at Stoxbox, recommends investors should do with these stocks when the market resumes trading today.
Just Dial – Buy
The pattern analysis on the daily timeframe shows that the price action has resulted in a bullish breakout from a rounding bottom schematic.
Not only did the breakout come on stupendous volume, but also with a breakaway gap further validating the breakout. Considering the volatility of the price action in the previous 3 trading sessions amidst its earnings, we reckon a buy on Just Dial from the range of 900-880 for the target of 997 and protective stop at 833.
HDFC
Life – Avoid
The price action on the weekly timeframe is trading in a potential double top pattern indicating bearish implication.
However, the breakdown confirmation comes on price breaching below 600 levels on a closing basis following which it would hand out a directional bias. Until then, we reckon to avoid HDFC Life.
Wipro – Buy
The street cheered Wipro’s earnings resulting in a 10% gap-up opening. With this, the price action surfaced from another base of accumulation it formed followed by a rounding bottom bullish breakout.
This indicates strength amongst the buyers. However, considering the extended move, we recommend buying Wipro on a dip from 498-489 for the target of 560 and stop loss at 464.
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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)
