The S&P BSE Sensex fell over 150 points while the Nifty50 closed above 22,000.
Sectorally, buying was seen in metal, oil & gas, consumer durable and FMCG while utilities, power, and realty stocks saw some some selling pressure.
Stocks that were in focus on Tuesday include names like Aster DM Healthcare which rose over 6% to hit a fresh record high, ITI which was up over 19% and IRFC which closed with gains of nearly 9% to hit a fresh record high on Tuesday.
We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what Deven Mehata, equity research analyst at Choice Broking had to say
Aster DM Healthcare
Aster DM is currently trading at 430 level, having recently experienced a robust breakout above the 423 level, marked by a significant runaway gap.
This breakout was accompanied by strong volumes, indicating substantial strength in the stock.
Notably, the stock is trading comfortably above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) exponential moving average (EMA) levels, reinforcing the bullish sentiment.
Furthermore, Aster DM has successfully breached a critical range between 383 and 423 levels, solidifying its upward trajectory.
The lower boundary of this range aligns with the 50-Day EMA, providing a formidable support level at 383.
Investors who entered at lower levels are advised to secure profits by booking partial positions at the current market price (CMP) while prudently trailing their stop loss at the 383 level.
For those considering fresh entries, potential dips around 425 level present an attractive buying opportunity, contingent on implementing a strict stop loss at 383.
This approach enables investors to capitalize on Aster DM’s upward momentum while effectively managing associated risks.
In essence, Aster DM exhibits compelling technical setup, suggesting a favourable outlook, with strategic profit-taking and risk mitigation strategies crucial for optimizing investment outcomes.
AgenciesITI
ITI has demonstrated remarkable strength and positive momentum in recent high-volume trading sessions, currently trading above 360.
The stock’s recent consolidation within the 300-320 range has laid the foundation for a potential upward movement, emphasised by a bullish candlestick pattern on the daily charts.
Notably, ITI maintains a robust technical posture by comfortably holding its position above the crucial 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), reflecting a solid base and signalling a positive trend.
The Relative Strength Index (RSI), a pivotal momentum indicator, is on the rise and currently stands at 82 level.
As ITI gears up to confront the next resistance level at 410, its ability to sustain itself above critical support levels during pullbacks suggests a strong technical setup.
Employing trailing stop losses, with a protective buffer near the significant support level of 335, is a prudent risk management strategy for investors who entered the market at lower levels.
In conclusion, the technical analysis paints a favourable picture for ITI, indicating the potential for further upward movement and instilling confidence among investors.
AgenciesIRFC
IRFC is currently positioned at 140 level, having recently accomplished a significant breakout from the range of 93-104.
This breakout, distinguished by substantial volumes, marks a crucial milestone as the stock reaches all-time high levels, indicative of robust strength.
Notably, the breakout is further reinforced by the stock’s ability to trade above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) exponential moving average (EMA) levels.
The stock has established a robust support base around 93 level, in proximity to its 50 Day EMA, adding resilience to its current bullish trajectory.
However, with momentum indicator Relative Strength Index (RSI) presently hovering at 90, signifying an overbought condition, a phase of profit booking or sideways movement may ensue.
Short-term traders are advised to consider booking profits at the prevailing levels, recognizing the potential for a temporary pullback.
Conversely, long-term investors are encouraged to maintain their positions while implementing a stop loss at the established support level of 93.
This strategic approach ensures protection against downside risks while allowing for potential capitalization on the stock’s upward momentum.
In summary, IRFC’s technical setup suggests a favourable outlook, with prudent profit-taking and risk-management strategies pivotal for optimizing returns.
Agencies(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
