Big Movers on D-Street: What should investors do with RIL, Nestle and Bajaj Finance?

economictimes.indiatimes.com:

Stocks in focus include names like RIL, which rose 0.51%, Nestle, which gained 0.54%, and Bajaj Finance, whose shares dropped 1.06% on Friday.Here's what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today:RIL — Buy for long termOn the longer time frame, the counter witnessed a breakout of trend-line resistance at around Rs 2450 levels on the daily chart. It retested near its breakout levels and started a new leg of the rally towards Rs 2600. The structure of the counter is good for long-term investors, as it is trading above all the important moving averages.

MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised. On the upside, Rs 2600 is an immediate hurdle; above this, we can expect a move towards Rs 2630. On the downside, Rs 2480 is a strong demand zone during any correction.Nestle — BuyThe counter has a strong bullish setup given breakout of the triangle formation on the longer time frame.

It has retested its previous breakout level at around Rs 21450. The overall structure of the counter is favourable for investors looking to invest at such levels, as it is still trading above the 200-SMA moving averages. On the upside, Rs 22000 is the important psychological resistance level, above which we can expect the 22500+ levels in the near term.