Big Movers on D-St: What should investors do with Jamna Auto, IDFC First Bank and ITC?

Indian market snapped its three-day losing streak on Monday supported by positive global cues. The S&P BSE Sensex rallied more than 300 points while Nifty50 closed above 15,800 levels.

Sectorally, buying was seen in FMCG, banks, capital goods, and consumer durable stocks while selling pressure was seen in metals, energy, oil & gas and IT stocks.

Stocks that were in focus included names like

which rose over 4 per cent, which gained more than 5 per cent, and which hit a fresh 52-week high and closed with gains of nearly 3 per cent.



Here’s what Jatin Gohil, Technical and Derivative Research Analyst at Securities recommends investors should do with these stocks when the market resumes trading today:


Jamna Auto Industries: Sell
Continuing its prior daily rising trend, the stock recorded a new high of Rs 135.50 but later reversed from the higher levels.

On the daily chart, the stock formed a shooting star pattern. A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the day’s low.

Its key technical indicators tested the overbought zone and may reverse down. Hence, profit booking cannot be ruled out. This could drag the stock towards its medium-term and long-term moving averages, which are placed at Rs 111 and Rs 104, respectively.

Fresh investment is not advisable at this juncture as risk-reward is not favourable. In case the undergoing positive momentum continues, the stock may face a hurdle around the psychological level of Rs 150.

IDFC First Bank: Buy
In the last month, the stock tested its 78.2% Fibonacci Retracement level of prior up-move (Rs 17.65-69.30), which was placed at Rs 29 and witnessed minor recovery subsequently.

On Monday, the stock witnessed a breakout from a narrow range consolidation and rose to a 3-week high of Rs 34.50. Spike in volume and rise in future open interest (OI) signals that major market participants are in favour of the bulls.

Its key technical indicators are positively poised on medium-term as well as short-term timeframe charts.

This could lead the stock towards the Rs 37-38 zone initially and Rs 41 subsequently. In case of any decline, the stock will find support at around Rs 30.

ITC: Sell
On 27 June 2022, the stock witnessed a breakout from a downward sloping trendline, and later, extending gains, it rose to a 3-year high of Rs 293.

Due to such a sharp rise in the stock, its key technical indicators reached the overbought zone on the short-term timeframe chart.

In the past, the stock either remained sideways or witnessed a gradual rise after its key technical indicators reached the overbought zone. Fresh investment is not advisable at this juncture, as risk-reward is not favourable.

In case of a profit-booking, the stock will find support at around Rs 275. However, a gradual rise could take the stock towards the Rs 297-300 zone.

(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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