Big movers on D-Street: What should investors do with Petronet, IRFC and RVNL?
Nifty rose 36 points to end at 19,611.
Stocks that were in focus included names like Petronet, which rose 5.56%, IRFC, which fell 4.5%, and RVNL, whose shares declined 4.15% on Wednesday.
Here's what Riches Vanara, Technical and Derivative Analyst at Stoxbox., recommends investors should do with these stocks when the market resumes trading today.
Petronet — Buy
Stock is trading in ascending triangle pattern and trying for early breakout from the same pattern with huge volumes. Relative strength charts in comparison to nifty-50 have also made double bottom patterns which compliments the price breakout.
The momentum indicators are also trading in the bull zone and confirm the momentum in price.
Hence we recommend buying for targets of 250 and 256 with stops below 236.
IRFC — Sell
Although stock is trading in bull mode and we also show 3 consecutive gap up openings on the daily chart, the price action and bearish engulfing candlestick pattern on Wednesday suggests some profit booking may come.
The 14 period RSI also gives bearish confirmation by making a double top pattern on daily time frames.
We reckon selling for targets of 67 and 64 with stops above 73.50.
RVNL — Sell
Stock is having a good setup on daily charts and it has also given early breakout from ascending triangle pattern. However we feel stock should see some profit booking before moving up.
The 14 period RSI has reversed sharply facing resistance from over its bought zone of 85.
Hence previous breakout levels will be tested for support. We recommend selling for targets of 145 and 140 with stops above 155.50.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
