Big Movers on D-St: What should investors do with IRB Infrastructure, SAIL and Maruti Suzuki India?

Indian market closed in the green on Thursday after falling over 1 per cent in the previous trading session. The S&P BSE Sensex rose more than 400 points while the Nifty50 closed above 15,500 levels.

Sectorally, buying was seen in auto, consumer discretionary, IT, telecom, and realty while some selling was seen in energy and oil and gas.

Stocks that were in focus include names like

which closed with gains of over 7 per cent, rose over a per cent and closed with gains of over 6 per cent on Thursday.



Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today:

IRB Infrastructure: Rs 195-192 would act as a key supports
On the daily and weekly charts, the stock is consistently facing selling pressure at higher levels. After a short-term correction, the stock is consistently trading below the 200, 50, and 20-Day SMA (Simple Moving Average) which is negative.

However, on Thursday, the stock bounced back sharply and rallied over 9 per cent, and formed a strong reversal formation. We are of the view that the short-term texture of the chart is non-directional.

For the traders, Rs 195-192 would act as key support levels. A close above the same could result in a pullback rally that is likely to continue till Rs 215-220.

On the flip side, a fresh correction wave is possible if the stock succeeds to trade below Rs 192. A close below this crucial support could take the stock towards Rs 185-180 levels.

SAIL: Short-Term texture is weak
SAIL has corrected by over 30 per cent so far in this quarter. On the daily and weekly charts, it is consistently forming a lower top series formation which is broadly negative for

.

The short-term texture of the stock is weak but oversold. We are of the view that as long as it is trading below Rs 70 the correction wave is likely to continue.

Below which it could retest the level of Rs 63. Further downside may also continue which could drag the index up to Rs 60. On the flip side, above Rs 70 a pullback move could continue till Rs 73-75.

Maruti Suzuki: Breakout traders should watch for Rs 8,000
After a short-term uptrend rally, the stock was hovering near the 200-Day SMA. On daily charts, it has formed a higher bottom formation which is broadly positive for

.

On the daily and weekly charts, it has formed a range breakout formation which supports further uptrend from current levels.

For the breakout traders, Rs 8,000 would be the key level to watch, the overall chart structure suggests if the stock sustained above the same then the breakout continuation texture is likely to continue up to Rs 8,500-8,700.

(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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