Big Movers on D-Street: What should investors do with IndiGo, Vedanta and Delta Corp?

economictimes.indiatimes.com:

Stocks that were in focus include names like IndiGo, which was down 4.39%, Vedanta, which fell 6.71%, and Delta Corp, whose shares declined 4.44% on Thursday.Here's what Amol Athawale, Technical Analyst (VP) at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:IndiGo — Buy In this week so far, the stock has corrected over 6%. Last Friday, the stock formed a long bearish candle and after a long time, it closed below the 50-day SMA (Simple Moving Average). However, the medium-term texture of the stock is still on the positive side.

We are of the view that the stock completed one leg of technical correction and now it is trading near an important retracement support level. The texture suggests a strong possibility of a fresh uptrend rally from the current levels. For the positional traders now, 2390 is a crucial support zone, if it holds that level then it could rally till 2550 or 50-day SMA.

Further upside may also continue which could lift the stock till 2610.Vedanta — SellIn this week so far, the stock corrected nearly 9%. On daily charts, the stock consistently formed lower top formation which indicates weak sentiment is likely to continue in the near future. Last Thursday, after a gap-down opening, the stock hovered between 250 to 256 price range.

The short-term texture of the stock is weak but oversold. For the traders now, as long as it's trading below 258, the weak wave is likely to continue. Below the same, the stock could retest the level of 248-245.