Domestic benchmark indices extended its gains for the straight second session amid mixed global cues, thanks to buying in heavyweight IT stocks and Bajaj twins. BSE Sensex jumped 142.33 points, or 0.21 per cent, to 60,806.22. NSE’s Nifty50 index added 21.75 points, or 0.12 per cent, to 17,893.45.
Select stocks such as Life Insurance Corporation of India (LIC), ACC and Mahindra & Mahindra (M&M) were on traders’ radar amid a strong trading session at Dalal street. Here is what Rohan Shah, Head Technical Analyst at Stoxbox suggests investors should do with these stocks during the Friday’s trading session:
| ACC | Reduce/Exit | Resistance: Rs 2,030-2,050 | Support: Rs 1,780-1,730 |
ACC’s stock witnessed a strong uptrend from March 2020 to November 2021, where price rallied from Rs 950 to Rs 2,550 levels. Post strong rally, price turned sideways and traded in a defined wide range from Rs 2,550 to Rs 2,000, which continued for more than 14 months. In the previous month price registered breakdown from the mentioned consolidation phase which is a bearish sign for short to medium term trend. However, The momentum indicators have turned oversold due to selloff recently and thus an oversold cannot be ruled out. In the near term, if the stock holds above Rs 1875, it can witness a pullback towards Rs 2,030-2,050 which shall utilize an opportunity to exit long positions from this counter. While on the other hand support past Rs 1,875 comes at Rs 1,780-1,730.
| Mahindra & Mahindra | Buy | Target Price: Rs 1,450 |
M&M has been the top performer among the Auto space and has relatively outperformed the head index -Nifty50. Recently, the stock staged a decisive breakout from wide consolidation which continued for about 4 months, which highlights a bullish signal for a short term trend. We believe any decline towards Rs 1,350-1,340, shall be utilized as a buying opportunity for upside of Rs 1,450 levels in weeks to come. The relative strength line against Nifty50 is inching north and trading near 52 week highs which denotes inherent strength in price.
| Life Insurance Corporation of India | Hold | Target Price: Rs 655 |
LIC is newly listed and does not offer long historical data to analyse the longer trend. However, on the price action front, from the available data, the stock is seen, trading in a range from Rs 720 to Rs 600 from the past few months. Currently, prices are placed around the lower end of the range, failure to hold the support, stock is expected to encounter further selling to new lows. On the flip side, if the Rs 600 mark is protected, the price is likely to head higher towards Rs 655 and eventually towards the higher end of the range post decisive breakout from the intermediate hurdle of Rs 655.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: SGX Nifty down 89 points: Asian markets, dollar movement, Q3 earnings, FPI flows & more
Also read: KPIT Tech, Bharat Electronics & 13 other stocks to go ex-dividend; M&M, BHEL, PB Fintech Q3 results today
