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    Big Movers on D-St: What should investors do with General Insurance Corporation, IDBI Bank and Rashtriya Chemicals?

    Synopsis

    Technically, after a breakout above Rs 155, positive momentum intensified. The promising price-volume breakout formation indicates a continuation of the uptrend in the near term. We are of the view that the uptrend texture is likely to continue and 195-205 would be the next resistance zone for the bulls.

    Big Movers on D-St: What should investors do with General Insurance Corporation, IDBI Bank and Rashtriya Chemicals?ThinkStock Photos
    Indian market closed with losses of over 1% on Thursday tracking muted global cues. S&P BSE Sensex fell more than 800 points while Nifty50 failed to hold on to 18,500 levels.

    Sectorally, some buying was seen in oil & gas while selling was visible in IT, metals, realty, and banks.

    Stocks that were in focus include names like General Insurance Corporation which was up over 10%, Rashtriya Chemical Fertilisers rose nearly 7% and IDBI Bank was up over 2% 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:

    General Insurance: Buy
    The stock has rallied nearly 25% so far in the week. On Thursday, despite weak market conditions, the stock rallied over 10%.

    Technically, after a breakout above Rs 155, positive momentum intensified. The promising price-volume breakout formation indicates a continuation of the uptrend in the near term.

    We are of the view that the uptrend texture is likely to continue and 195-205 would be the next resistance zone for the bulls.

    On the other side, 164 could be the sacrosanct support zone for trend-following traders. A close below the same would push the traders to exit from the trading long positions.

    IDBI Bank: Buy
    The stock registered a fresh 52-week high of 61 on Thursday. The stock has rallied by nearly 45% so far in this quarter.

    The stock is making a higher high and higher low formation on the daily charts and modest volume activity indicates a further uptrend from the current levels.

    For the positional traders, 54 or 20-Day SMA (Simple Moving Average) would be the key level to watch out for.

    If the stock manages to trade above the same (20-DMA) then we can expect the uptrend to continue up to Rs 67-75.

    RCF: Buy
    The stock made a fresh 52-week high of 144.85 on Thursday. The stock has rallied over 50% so far in this quarter.

    The short-term texture of the stock is bullish but is mildly in overbought territory. Hence, we could expect some profit booking at higher levels.

    For the bulls, 150-155 would be the key resistance zones to watch out for. While 130-127 would act as a crucial support level.

    We are of the view that as long as the stock trades above 127, the uptrend texture is likely to continue. On the flip side, below 127 uptrends would be vulnerable.

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






    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
    (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 .)

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

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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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