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Stocks that were in focus included names like BHEL, which rose 3.36%, GAIL, which jumped 4.77%, and Hudco, whose shares increased 5.41% on Thursday.
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.
BHEL – Avoid
After consolidating in the range of 113-135 levels in the month of Sept-Oct 2023, price has given a sharp upside rally to make an eight years high of 176.5 odd levels. Volumes were on top as buyers were having full control on price. As the stock has given almost 56% return from its lower level we can expect some profit booking from here.
At current level, price is overvalued and can see some profit booking till 150-140. Stock is good for the long term and can buy around lower levels of 140 and from there upside can be seen to make new highs in near terms. Price is also moving above all three major averages which is the positive sign for upside. The Stochastics Oscillator is also moving in the overbought zone indicating some correction from here.
Hence one should avoid buying at current level and can buy at the lower level of 150 more at dips of 140 with SL of 120 on weekly closing basis and upside can be seen till 200-240 in next 10-12 months.
GAIL – Buy
From the lows of 116 level made on 31st Oct 2023 price has given an upside rally to make the high of 129 odd levels. From highs price witnessed some profit booking and moved in range of 122-129 odd levels.Taking support of 20 DMA at lower level, in current week with relatively high volume price has given sharp pull back to make a new all time high of 134 and closing above previous higher level we can see further upside from here. Volumes were on rise as bulls were having upper hand on price.
The Stochastics Oscillator is also moving in an upward trend along with an increase in volume indicating further upside from here. Hence one can buy at current levels and more at dips of 125 with SL of 116 on weekly closing basis and upside can be seen till 158-190 in next 10-12 months.
Hudco – Buy
In the daily chart after making an all time high around 96 in Oct 2023, price has witnessed some profit booking to make the low of 70 odd levels.
Volumes were on rise as sellers were having upper hand on price to take it down. From lows price has given some pull back forming Ascending Triangle Pattern and today with relatively high volume price has breached the pattern and closing above that level indicates further upside from here.
The Stochastics Oscillator is also moving in an upward trend along with the marginal increase in volume indicating further upside from here. Hence one can buy at current levels and more at dips of 78 with SL of 70 on weekly closing basis and upside can be seen till 110-130 in next 6-8 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)
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