Big movers on D-Street: What should investors do with REC, Suzlon Energy and Hudco?
Sensex rose 173 points to settle at 66,118, while the broader Nifty gained 51 points to end at 19,716.
Stocks that were in focus included names like REC, which rose 6.06%, Suzlon Energy, which dropped 1.54%, and Hudco, whose shares jumped 2.63% on Wednesday.
Here's what Amol Athawale, VP technical research analyst at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today.
REC — Neutral
In this quarter so far, the stock rallied over 70%. After the 170 breakout the stock consistently held higher high and higher low series formation, which is largely positive.
Last Wednesday, the stock rallied over 6% and hit a fresh all time high of 285.95.
We are of the view that, the short-term texture of the stock is bullish but due to temporary overbought conditions, we could see some profit booking at higher levels.
For the traders now, 295-300 would be the key resistance zones while 265-260 could be the key support areas. However, below 260 uptrend would be vulnerable.
Suzlon — Neutral
In the medium term period, the stock is consistently holding higher, high and higher low formation.
In the current quarter so far, the stock rallied over 65 percent.
In the short term period, after a correction the stock is witnessing range bound activity. We are of the view that, the larger texture of the stock is bullish but fresh uptrend possible only after dismissal of 26.50 above which the stock could move up till 28-30.
On the flip side, below 20 day SMA (Simple Moving Average) or 24.50 the selling pressure is likely to accelerate.
Below the same, the stock retest the level of 23-22 or 50 day SMA.
Hudco — Buy
Last Friday, the stock registered a fresh 52-weeks high of 91.75. It also formed
