Big Movers on D-Street: What should investors do with ITC, IndusInd Bank and Aarti Drugs?
Stocks that were in focus include names like ITC, which fell 4.30%, IndusInd Bank, which rose 1.96%, and Aarti Drugs, whose shares surged 18% on Monday.Here's what Vikas Jain, Senior Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:ITC — Book ProfitsThe stock scaled a new 52-week high near to 500 levels and witnessed sharp profit booking to close 5% lower in yesterday's trade. The much-awaited news flow of demerger is out and a sharp decline post the news has triggered a halt in the up move from current levels.
RSI has also reversed from its higher range and we expect follow-through along with the dowmward move. We expect some retracement of the previous up move to test the medium-term average of 450-440 levels over the next few weeks.IndusInd Bank – BuyThe stock has closed at a 3-year high with higher bottoms and higher tops on its monthly charts.
RSI is trading above the average line on monthly charts and we have witnessed strong volume expansion at lower levels. Any decline near to the short-term average of 1380-1400 levels would be a good entry point.
There is a minor resistance near 1600 levels, a crossover of the same would give a strong breakout of 1750-1800 over the next few months.Aarti Drugs — HoldA strong up move of 18% on the back of its results is outperforming the broader markets. It has given a breakout on its monthly charts, crossing its 34-month average at Rs 535 levels which would act as strong support.
There has been a big block being exchanged in Mar’23 near to sub Rs 400 levels and yesterday's price action suggests further up move. One can hold the stock for a higher target of Rs 750 from current levels.(Disclaimer:
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