Big movers on D-Street: What should investors do with Berger Paints, Glenmark Pharma and Union Bank?
Sensex logging its worst week in over 15 months on lingering worries over a higher global interest rate environment. Nifty closed down 0.34% at 19,674, while the Sensex fell 0.33% to 66,009.
Stocks that were in focus included names like Berger Paints, which rose 6.85%, Glenmark Pharma, which fell 2.98%, and Union Bank, whose shares jumped 5.39% on Thursday.
Here's what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Berger Paints — Buy
The counter is in a classical uptrend and witnessed a breakout of an upward-sloping channel on the daily chart with strong volume.
The overall structure looks lucrative as it trades above its all-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, 680 is a susceptible level; above this, we can expect a run-up towards 700+ levels in the near term. On the downside, Rs 620 is the critical level during any correction.
Glenmark Pharma — Buy for long term
The counter has witnessed a breakout of an inverse head and shoulders formation on the weekly chart with huge volume, while on the daily chart, it is making higher highs and higher lows formations.
For long-term investors, counter is providing a buying opportunity as it is trading above all its important moving averages.
