Big movers on D-Street: What should investors do with Arvind Fashion, Adani Ports and IRFC?
Sensex climbed 282 points to settle at 64,363 and the Nifty went up 97 points to end at 19,230.
Stocks that were in focus included names like Arvind Fashion, which gained 5.85%, Adani Ports, which jumped 2.67%, and IRFC, whose shares declined 1.23% on Friday.
Here's what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Arvind Fashion — Buy
The counter has been traveling in a long consolidation range for the last year. A long move will only be expected above Rs 390 levels.
The structure of the counter looks lucrative for short- to long-term investment, as it is trading above all its important moving averages.
On the upside, Rs 390 will act as a resistance level; above this, we can expect a big move towards Rs 500 levels in the next few months. On the downside, Rs.
295 will be an important support during any correction.
The momentum indicator RSI (relative strength index) is also positive, whereas MACD (moving average convergence divergence) is supporting the trend.
Adani Ports — Buy
It is also in process of forming a right shoulder of an inverse head and shoulder pattern formation on the longer time frame. Presently it is trading above 200-DMA and showing some recovery from the lower levels of Rs 755.
A long move will only be expected above Rs 850 levels.
On the upside, Rs 850 will act as a resistance level; above this, we can expect a big move towards Rs 950 levels in the next few months. On the downside, Rs 650 will be an important support during any correction.
The momentum indicator RSI (relative strength index) is also positive, whereas MACD (moving average convergence divergence) is supporting the trend.
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