Big Movers on D-St: What should investors do with Federal Bank, Sula Vineyards and L&T Finance Holdings?

Indian market pared morning gains and closed in the red on Monday tracking muted cues. The S&P BSE Sensex fell more than 150 points while Nifty50 failed to hold on to 18,000 levels.

Sectorally, selling was seen in metals, telecom, auto, and banks while some buying was visible in utilities, power, IT, and the public sector.

Stocks that were in focus include names like Sula Vineyards which was up more than 14%, Federal Bank which gained more than 1%, and L&T Finance Holdings which closed with gains of nearly 3% on Monday.

Here's what Rohan Shah - Head of Technical Research at Stoxbox recommends investors should do with these stocks when the market resumes trading today:

Federal Bank: Buy
In October 2022, the stock surpassed the multi-year supply zone of Rs 122-127 which led to a breakout from the 5-year range signalling a bullish bias for the short to medium-term trend.

Post breakout, the price witnessed a shakeout which got arrested around its previous supply zone and saw a sharp recovery that denotes inherent strength in the trend.

The price is trading above the Ichimoku cloud, conversion line, and rising baseline which highlights momentum in the stock price.

We expect the price to head higher towards 152 in the coming sessions which is projected based on 127.2% external retracement of 2017-2020 decline (127 to 36).

On the flip side, 136 acts as strong support in the near term which is determined by the confluence of support.

L&T Finance Holdings: Buy
In November 2022, the price staged a breakout from a contracting triangle pattern and posted that the price is heading higher with rise in volumes, indicating inherent strength.

The volume behaviour is robust as volumes are higher on up days and lower on down days. The lagging span line has surpassed the cloud resistance with conversion and base line heading north hints at a positive momentum.

MACD is inching higher and is converging towards its average. It is trading in a bullish territory which compliments the bullish bias on price.

We expect the stock to scale higher towards 105-107 which was also seen as a supply zone previously. On the other hand, strong support is present around 91-92 levels.

Sula Vineyards Ltd: Buy
This stock has been listed recently and limited data available to anticipate the price action and trading levels.

However, in Monday's session, the price staged a new life high breaking its previous high and the 4-week consolidation hints at a positive momentum in price.

Till it holds above 363-360, the price is expected to do well. Whereas a breakdown below the same price shall encounter price correction.

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