Domestic stock indices dropped sharply on Wednesday amid concerns over aggressive Fed rate hikes and rising Covid cases in China. The BSE Sensex plunged more than 635 points or 1.04 per cent to settle at 60,657. The Nifty50 tanked 190 points to end the session at 18,043.
Despite the weakness, select stocks like Axis Bank, Anand Rathi Wealth and Sanghvi Movers hit a 52-week high on Wednesday. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities advised traders to do with these stocks on Thursday’s trading session:
Anand Rathi Wealth | Buy Target | Rs 780 | Stop loss | Rs 680
The stock has given a significant move in yesterday session and has given falling trendline breakout on daily chart which is accompanied by decent volume. After three days of consolidation, the stock has surpassed its previous swing high while forming ‘Bullish belt hold’ candlestick pattern on the daily scale.
It has been trading well above all its key moving averages. The momentum indicator RSI is also trading above the level of 60 marks, which confirms the strength in the stock. Continuing the momentum, we could see action towards Rs 755 and Rs 780 levels where 50% and 61.8% Fibonacci extension is seen. However, the bullish view will be negated if it gets close below Rs 680 where its 100 DMA is seen.
Axis Bank | Buy | Target Rs 1,000 | Stop loss: Rs 900
Currently, the stock is placed at the lifetime high zone and hovering well above all the significant moving averages. The scrip has witnessed a spectacular run post the consolidation zone breakout from its previous congestion zone.
Although some breather can be expected because daily momentum indicator RSI is showing bearish divergence as prices has made higher highs and RSI made lower highs. Hence, dip towards 930 -940 zone can be utilized as buying opportunity for the upside target of 1000 with key support placed near 900 levels.
Sanghvi Movers | Buy | Target Rs 410 | Stop loss Rs 310
The stock has witnessed a vertical rally from the levels of Rs 288 and has gained over 22 per cent in the last nine trading sessions. The stock has seen such traction after the formation of ‘Bullish Engulfing’ candlestick pattern at line of parity on the weekly chart. Earlier there were few attempts to breach the resistance zone Rs 330-335 but it failed to do so.
Currently, the breakout seems genuine as the volume trend has shown an accumulation indicating an increased enthusiasm to price higher. On the upside, one should see a rally towards Rs 380 and above that to Rs 410. For long trade, keep a stop below Rs 310.
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