Stocks that were in focus included names like Metro Brands, which fell 3.84%, HUL, which rose 0.78%, and Titan, whose shares climbed 2.18% 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.
Metro Brands – Avoid
The counter has witnessed a breakdown of head and shoulder pattern formation on the daily chart. The overall structure is distorted as it trades below its all-important moving averages (9, 20, 50, 100-DMA); however, it has a demand zone near Rs 1100. On the upside, Rs 1200 is an immediate susceptible area; above this, we can expect a run-up towards Rs. 1250+ levels in the near term.
HUL – Buy for long term
The counter is travelling in a long consolidation channel on the daily chart. The structure of the counter looks lucrative once it will cross the level of Rs 2680. Conservative investors can take the position at the current level of Rs 2682 with SL 2470 for a target of Rs 3014.
Titan – Buy
The counter boasts a robust bullish chart. It ascends within a rising channel, carving higher highs and lows on the daily timeframe. This upward thrust is further fueled by its price comfortably above all important moving averages, highlighting a solid underlying structure.
Momentum indicators are positively poised to support the current strength of the trend. 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 4000 is an immediate hurdle; above this, we can expect a move towards Rs 4200+. On the downside, a cluster of moving averages at around Rs. 3650 is a strong demand zone during any correction.
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