Big movers on D-Street: What should investors do with Vodafone Idea, Natco Pharma and Coffee Day?
Sensex jumped 528 points to regain the 67,000 level, while Nifty scaled record 20,000-mark for the first time as robust buying by domestic investors helped equity markets extend the winning run to the seventh straight session on Monday.
Stocks that were in focus included names like Tata Power, which rose 6.67%, Natco Pharma, which fell 8%, and Coffee Day, whose shares declined 14.88% on Monday.
Here's what Riches Vanara, Technical And Derivatives Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Vodafone Idea — Sell on rise
Stock is showing stupendous momentum from the last several weeks and making new highs every week. However we feel stock has approached the resistance area from where it has reversed multiple times.
The stock is also approaching its 200 WEMA and it seems crossing it will be not easy.
Hence, the stock will be a sell on rise candidate for targets of 10.50 and 9.60 with stop above 13.
Natco Pharma — Sell
We have seen a gap down opening after facing resistance at 61.8% fibonacci retracement level and it has also violated 50% retracement level calculated from previous pick to latest low.
The stock is getting some supply pressure from higher levels and momentum indicators MACD and 14 RSI compliments the supply pressure.
Hence we reckon to sell for targets of 790 and 770 with stop above 850.
Coffee Day — Buy
Stock broke out of the descending channel pattern on weekly charts with above average volume. This week price has retraced back towards breakout levels with a gap down opening.
However volume activity is below average and can be termed as a shakeout before further upmove.
