Shares of Adani Wilmar, Kohinoor Foods and LIC have seen sharp falls in the last couple of sessions. LIC stock has fallen 7 per cent in the last five sessions; Kohinoor Foods is down 10 per cent while shares of Adani Wilmar have plunged 12 per cent during the same period. While analysts see Kohinoor Foods staying sideways, they find risk-reward attractive in case o LIC. For Adani Wilmar, a stay above rs 530 level holds the key, said technical analysts.
Kohinoor Foods | Resistance Rs 64 | Support Rs 49 | Target Rs 70
Shares of Kohinoor Foods have been in a long consolidation phase and are forming a base around Rs 50 after giving a meaningful correction from higher levels.
The price structure of Kohinoor Foods is not lucrative. One can say the structure is sideways. On the higher side, Rs 64 is acting as an immediate resistance. Above this level, one can expect sideways structure to end. That will start a new leg of rallying till Rs 70-plus levels. On the downside, the level of Rs 49 is the major support during any correction.┬а
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Life Insurance Corporation of India | Buy LIC at Rs 650 | Target Rs 700 | Stop Loss Rs 635
Earlier this month, LIC had made a breakout from the downward-sloping trendline resistance at Rs 655 levels. While breaking out, the stock price crossed above the 100-day MA, which indicates that the intermediate trend of the stock has turned bullish. Following the breakout, the stock price witnessed an upside momentum. At present, the stock price is retracing back to the breakout level, which coincides with the 61.80 per cent retracement levels, as per the Fibonacci retracement of its recent move from Rs 585 to Rs 750 levels.
The support of 100-day MA is placed very close to these levels, making Rs 650-655 levels a strong support zone for the stock. Thus, the prevailing levels make LIC an attractive ‘buy’ with a favorable risk-reward ratio.
Foram Chheda, CMT is a Technical Research Analyst and founder of chartanalytics.co.in.
Adani Wilmar | Support Rs 530 | Target Rs 600-620
Adani Wilmar witnessed a breakdown of the key support level of Rs 530 in Friday’s session. Momentum indicators were oversold therefore the stock is witnessing a bounceback and trading with a 5 per cent upward circuit today. It needs to keep regaining strength above the Rs 530 level to confirm any trend reversal. Otherwise, we can expect a fresh round of selling. If it manages to stay above the 530 level, we can expect a move towards the Rs 600-620 levels.
Santosh Meena, Head of Research, Swastika Investmart
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