Big Movers on D-St: What should investors do with Solar Industries, Craftsman Pharma and REC?

Indian market closed lower on Friday tracking muted global cues. The S&P BSE Sensex fell nearly 300 points while the Nifty50 managed to hold on to 18100 levels.

Sectorally, buying was seen in consumer durables, public sector, realty, and metal stocks while selling was seen in FMCG, banks, utilities, and power stocks.

Stocks that were in focus include names like Solar Industries which rose nearly 6%, Craftsman Pharma which gained more than 7%, and REC which closed with gains of over 2% on Friday.

Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. at recommends investors should do with these stocks when the market resumes trading today:

Solar Industries: Buy
The counter is moving in an ascending channel formation, which is defined as price action contained between two ascending parallel lines. The overall structure is very bullish, and higher highs and higher lows characterise this price pattern.

It trades above its all-important moving averages, and momentum indicators are also positively poised to support the current strength.

On the higher side, Rs 4450 is acting as an immediate resistance; above this, we can expect a classical move till Rs 4800+, while on the lower side, Rs 4070 is the important support during any correction.

Craftsman Automation: Buy
The stock is in a classic uptrend and has broken out of a long consolidation formation with high volume. The overall structure is very bullish, as it trades above its all-important moving averages.

The pattern suggests immediate targets of Rs 3750–3800, while it has the potential to move further upside till 4000+ levels in the near term.

On the downside, Rs 3200 will act as an immediate support level. The momentum indicators are positively poised to support the current strength.

REC: Buy
The counter has given a breakout of a bullish inverse head & shoulders formation on the daily chart, but it has given a meaningful correction to retest the previous breakout level of 108.

Now it is starting the next leg of a rally, where 120 is an immediate trend-line resistance level; above this, we are expecting a move toward the 130 level. On the downside, Rs 111 is major support during any correction.

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