Big Movers on D-St: What should investors do with FACT, UCO Bank and Shree Renuka Sugars?

Indian market closed in the red on Friday for the second consecutive day. S&P BSE Sensex fell more than 400 points while Nifty50 closed below 18300 levels.

Sectorally, selling was seen in public sector, realty, healthcare, and capital goods stocks.

Stocks that were in focus include names like Fertilizers and Chemical Travancore Ltd which rose nearly 20%, UCO Bank which rose over 2% and Shree Renuka Sugars which closed with gains of over 3% on Friday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd recommends investors should do with these stocks when the market resumes trading today:

FACT: Buy
The counter is witnessing a vertical move after witnessing the breakout of a broadening wedge formation.

The pattern target has been achieved, and most of the momentum indicators are in overbought territory, so the risk-reward is not favorable.

The momentum, however, may continue to build until the trend reverses.

Regardless of how difficult it is to predict the precise target, 243 should serve as the trailing stop loss for any existing positions.

UCO Bank: Book Profits
There is almost a 90-degree rise from level 12 in this counter, which is clearly a euphoric move. Therefore, traders are advised to remain cautious at higher levels.

36–40 was historically a supply zone, and the current momentum is slowing. On Friday, it formed a spinning candlestick formation.

Friday’s intraday low 34.8 will now act as a sacrosanct support level. A close below this can lead to a meaningful correction towards the 25.

Shree Renuka Sugars: Buy
The counter is making higher highs and higher lows. It has created a strong base in a cluster of the 20-and 50-day moving averages, and the RSI is also holding the 50-mark; therefore, we can expect the bullish momentum to continue.

On an immediate basis, 62.5 is resistance. Above this, we can expect a move towards 68.5-75 levels. On the downside, 55 is a strong base, and a close below this level could lead to some weakness.

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