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    Big Movers on D-St: What should investors do with Oil India, Deepak Nitrite and MRPL?

    Synopsis

    However, on a short-term time frame, momentum indicators indicate that the stock is in an overbought zone and there are high chances of a quick short-term price correction if the stock trades below Rs 280.

    Big Movers on D-St: What should investors do with Oil India, Deepak Nitrite and MRPL?
    The Indian market bounced back after falling for four consecutive days on Thursday. The S&P BSE Sensex rose more than 400 points while the Nifty50 closed above 16,400 levels.

    Sectorally, buying was seen in telecom, energy, oil & gas, and healthcare stocks while some selling pressure was visible in metal stocks.

    Stocks that were in focus include names like Oil India which rallied over 6 per cent, Deepak Nitrite recouped losses and closed flat with a negative bias, and MRPL rose over 2 per cent on Thursday.

    Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

    Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd

    Oil India: Buy
    On June 9th, the stock made yet another 52-week high of Rs 306. This month the stock has rallied over 30 per cent.

    On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for Oil India Ltd.

    However, on a short-term time frame, momentum indicators indicate that the stock is in an overbought zone and there are high chances of a quick short-term price correction if the stock trades below Rs 280.

    For the next few trading sessions, Rs 280 would be the trend decider level for bulls. If the stock sustains above the same, then we can expect a continuation of the uptrend up to Rs 300.

    Further, the uptrend may also continue which could lift the stock to Rs 310. On the flip side, dismissal of Rs 280 could possibly trigger a quick short-term correction up to Rs 260-255.

    Deepak Nitrite Ltd: 20-day SMA eyed
    In the last week, the stock corrected by nearly 10 per cent. From the last couple of weeks, it is consistently facing selling pressure at a higher level.

    In addition, on the daily and weekly charts, it has formed a lower top formation, and post the breakdown it is comfortably trading below its 20 and 50-day SMA which is largely negative.

    As long as it is trading below Rs 1,900 or 20-day SMA, the correction wave is likely to continue. Below the same, it could touch the level of Rs 1,675.

    Further downside may also continue which could drag the stock up to Rs 1,620. On the flip side, a fresh uptrend is possible only after Rs 1,900 or above the 20-day SMA level. A close above Rs 1,900 could take the stock up to Rs 1,950-1,980.

    MRPL: Watch for Rs 105
    The stock has rallied over 185 per cent so far in this quarter. It has rallied from Rs 40 to Rs 127 within a very short period of time. That rally was price dominating and supported with modest volume activity.

    On the daily and weekly charts, the stock has formed a Higher High and Higher Low series pattern which suggests that the uptrend momentum is likely to persist in the near future.

    The short-term texture of the stock is strong but overbought too. For the positional traders now, Rs 105 would be the trend decider level.

    If the stock starts to trade above the same then we can expect a further uptrend up towards Rs 140-150 However, if it closes below Rs 105, traders may prefer to exit from trading long positions.


    (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)






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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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