Big movers on D-Street: What should investors do with CEAT, ABFRL and Coforge?
investors resorted to profit booking. The 30-share Sensex dropped 733 points to settle at 73,878 and Nifty declined 172 points to 22,475.
Stocks that were in focus include names like CEAT, which fell 2.93%, Coforge, which was down 10.03%, and ABFRL, whose shares dropped 3.43% on Friday.
Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Coforge
The counter has witnessed a breakdown in neckline support below Rs 5000 levels with strong volume. The long term structure of the counter became distorted as it is trading below its all-important moving averages.
However, Rs 4200 will be the next demand level. On the upside, 5000 is an immediate susceptible area; above this, we can expect a run-up towards 5400+ levels in the near term. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicators are also negatively poised.
ABFRL
The Stock has given a breakout of a bullish inverse head and shoulder formation with the surge in volume on the Daily Chart. In the last trading session, it retested their last breakout level at 250.
The structure of the counter looks lucrative for long term investors, as it is trading below its all-important moving averages.
The pattern suggests an immediate target of Rs 274, while it has the potential to move further upside till the 290 level. On the downside, Rs. 235 will be an immediate support level.
CEAT
The counter has found
