Big movers on D-Street: What should investors do with Siemens, Oil India and LIC?
Equity markets declined in a volatile trade on Wednesday. The 30-share Sensex declined 117 points to settle at 72,987 and the broader Nifty dipped 17 points to close at 22,200.
Stocks that were in focus include names like Siemens India, which rose 6.33%, Oil India, which jumped 1.98%, and LIC, whose shares increased 6.82% on Wednesday.
Here's what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.
Siemens India
The stock is trading at an all-time high of 7240.00, showing strong momentum. However, on its monthly time frame charts, the stock has reached an RSI of 89, indicating overbought conditions.
According to multiple technical indicators and momentum oscillators, the upside appears limited from current levels, and the stock is expected to face some profit booking at higher levels.
It is likely to struggle at these higher levels, and it is advisable to book profits at the current market price.
Oil India
The stock has reached an RSI of 90.17 on its monthly time frame charts, indicating extreme overbought conditions. The stock is also experiencing continuous wick rejections at higher levels around 630-635, suggesting that it may fall towards 580-600 as selling pressure increases.
The stock is expected to face significant resistance at the 700 mark, and we advise traders and investors to book profits at this point.
LIC
The stock has achieved a strong breakout from its triangular consolidation pattern and has successfully
