Big movers on D-Street: What should investors do with Paytm, Mastek, KFin Technologies?
global markets. The BSE Sensex fell 365 points at 64,886, while Nifty declined 120 points to end at 19,265.
Stocks that were in focus include names like Paytm, which fell 0.71%, Mastek, which gained 2.25%, and KFin Technologies, whose shares jumped 11.65% 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:
Paytm — Buy for long term
The counter has witnessed a breakout of a triangle formation, which is generally considered a bullish signal.
The breakout suggests that the counter may experience further upward movement. It has also formed higher highs and higher lows patterns, and it is trading above all important moving averages.
The structure of the counter becomes so lucrative for long-term investors.
On the upside, Rs 950 is the neckline and an immediate hurdle; above this, we can expect a move towards Rs 1000+. On the downside, a cluster of moving averages at around Rs 850 is a strong demand zone during any correction.
Mastek — Buy
The counter has given multiple breakouts on the longer-term chart.
These include a triangle, long consolidation, and an inverse head and shoulders formation with strong volume. The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) supports the current strength.
On the upside, Rs 2350 is an important psychological level; above this, we can expect a move towards Rs 2450+.
