Stocks that were in focus included names like RIL, which fell 1.49%, LIC, which rose 4.5%, and Angel One, whose shares declined 13.5% on Tuesday.
Here’s what Viral Chheda, Sr Technical Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today.
RIL – Book profits
In the daily chart after making the low around 2220 in Oct 2023, price has witnessed a sharp Bull Run to make an all time high of 2793 odd levels. Price has given almost 26% returned from its lower level as buyers were having full control on price.
Stock can face a resistance around 2820-2850 level and can witness some profit booking from here to make a low anywhere between 2600-2650. For long term stock looks good and one can buy at every dip. Price is moving above its all three major averages of 20 DMA, 50 DMA and 200 DMA which is a good sign for further upside.
Hence one can book some profit at current level and wait for minor dips to buy around 2620 and more at dips of 2500 with SL of 2400 on weekly closing basis and upside can be seen till 3200-3600 in next 10-12 months.
LIC – Buy
From May 2023 to Nov 2023 stock moved in the range of 590-690 odd levels and once it breached the consolidation phase, price gave a sharp upside rally to make the 52 week high of 900 odd levels. Volumes were on rise as bulls were having upper hand on price. For the first time price has moved above its IPO price and closing around this level indicates further upside from here.
Stock can face resistance of previous all time high level of 912, once it is taken out we can see up move till 1000-1200 in near term. Stock looks good for the long term and one can buy at every dip. The Stochastics Oscillator is also moving in an upward trend along with marginal increase in volume indicating further upside from here.Hence one can buy at current levels and more at dips of 850 with SL of 800 on weekly closing basis and upside can be seen till 1000-1200 in next 10-12 months.
Angel One – Avoid
In the daily chart after making double bottom around 1450 in July 2023, price has given a sharp upside rally to make an all time high of 3896 odd levels. Price has given almost 165% returned from its lower level as buyers were upper hand on the price. After giving high returns, price moved sideways for some days and in the current week with relatively high volume price has witnessed a sharp correction to make a low of 3340 odd levels.
Further downside can be seen from here and we would suggest to book partial profit if the stock is bought at a lower level. For long term stock looks good and one can buy at dips of anywhere between 3000-3100. Price is currently moving below its 20 DMA which is a negative sign for upside move. The Stochastics Oscillator is also moving in an overbought zone.
Hence one can avoid buying at current levels and can buy at dips of 3100 and more at dips of 2950 with SL of 2800 on weekly closing basis and upside can be seen till 3800-4200 in next 10-12 months.
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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)
