Big movers on D-Street: What should investors do with HAL, IOB and Raymond?
Sensex ending a 11-session winning streak, as investors remained cautious ahead of the US Federal Reserve's interest rate decision
Stocks that were in focus included names like HAL, which rose 0.99%, Indian Overseas Bank, which gained 14.30%, and Raymond, whose shares declined 4.94% on Monday.
Here's what Avdhut Bagkar, Derivatives & Technical Research at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
HAL — Buy
Shares of Hindustan Aeronautics are robustly trading near the all-time high of Rs 4.170, without any noteworthy signs of weakness. The support of a 50-Simple Moving Average (SMA) placed at Rs 3,877 continues to board the bulls, with sustainability over Rs 4,200 could result in fresh upward rallies.
A breakout over Rs 4,200 would see the price action heading towards Rs 4,500 to Rs 4,700 levels.
The support for the positive bias exists at 50-SMA, which needs to be adhered to on a closing basis. We advocate a bullish stance on the stock.
Indian Overseas Bank — Buy
Despite the stock approaching its 200-monthly moving average (MMA) set at Rs 50.45, the current trend is highly enthusiastic.
Unless the support of Rs 40 and Rs 36 are negated, the buoyant trend is anticipated to absorb all the selling pressure expected to witness near the 200-MMA.
The underlying strength represents rigorousness, in spite of price trading in the overbought territory of RSI (Relative Strength Index), shows the daily chart. We recommend a bullish stance with the price objective expected to reach Rs 52 and Rs 55 levels.
Raymond — Avoid
Post hitting a new historic peak, the Raymond shares have displayed a reluctance to decisively surpass Rs 2,200.
