Big movers on D-Street: What should investors do with Marico, Shipping Corp and IndiGo?
Sensex climbed 405 points to settle at 65,631, while Nifty advanced 109 points to end at 19,545.
Stocks that were in focus include names like Marico, which fell 5.08%, Shipping Corp, which rose 6.91%, and IndiGo, whose shares gained 3.81% on Thursday.
Here's what Amol Athawale, Vice President — Technical Research at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today.
Marico — Avoid
Last Thursday, the stock shed nearly 5 percent. From the last few trading sessions, the stock consistently faces selling pressure at higher levels.
Technically, a long bearish candle on daily and weekly charts indicating further weakness from the current levels. In addition, after a long time the stock breached the important support level of 555 and now it is comfortably trading below the 50 day SMA (Simple Moving Average) which is largely negative.
For the traders now, as long as the stock is trading below 555 the weak sentiment is likely to continue.
Below which it could slip till 535-520 or 200 day SMA. On the flip side, above 555 we could see one quick pullback rally till 565-570.
Shipping Corp — Avoid
After a short-term correction, the stock is consistently taking support near 20 day SMA (Simple Moving Average) last thursday.
The stock rallied over 7% and formed a promising price volume reversal formation. Technically, for the positional traders now, 20 day SMA or 144 would act as a sacrosanct support zone.
Above which, the stock could retest the level of 160 -165.
On the flip side, below 144 the selling pressure is likely to accelerate. Below the same, it could slip till 138-135.
IndiGo — Buy
After a long correction, eventually the stock took the support near 2350 and reversed.
