Big Movers on D-St: What should investors do with FACT, Bharat Dynamics and Hikal?

Indian market closed in the green on Thursday following positive global cues. The S&P BSE Sensex rose more than 200 points while Nifty50 closed just a shade below 18200 levels.

Sectorally, buying was seen in oil & gas, metal, energy, banks, and utilities stocks while selling was seen in consumer durables, capital goods, and FMCG packs.

Stocks that were in focus include names like FACT which was up nearly 10%, Bharat Dynamics which gained more than 2%, and Hikal which gained more than over 3% on Thursday.

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

Fertilizers & Chemicals Travancore Ltd: Profit Booking
Last Thursday, the stock hit yet another fresh all-time high of Rs 355.70. In this quarter, the stock has rallied over 225% and in this week alone it gained over 45%.

The short-term texture of the stock is bullish but the counter is in an overbought zone. We are of the view that, due to temporary overbought conditions, we could see volatile price action in the near future.

For traders, Rs 310 would now act as an immediate support zone. Above the same, it could move up to Rs 375 -385.

On the flip side, there is a strong possibility of profit booking if it succeeds to trade below Rs 310, below which it could slip till Rs 280-265.

Bharat Dynamics Ltd: Buy
After a long correction, the stock took support near the 200-day SMA (Simple Moving Average) level and bounced back sharply.

Post reversal, the stock rallied nearly 15% and also formed a long bullish candle on the weekly charts. However, the short-term texture of the stock is still non-directional, perhaps traders are waiting for either side's confirmation.

For the bulls, a 50-Day SMA or Rs 950 would be the important breakout level to watch.

If the stock manages to close above the same, it could move up to Rs 1,000-1,020. On the flip side, trading below Rs 890 may increase further weakness till Rs 860-850.

Hikal Ltd: Buy
After a short-term correction, the stock has formed a double-bottom formation near 200-day SMA (Simple Moving Average) level. Post formation, the stock bounced back sharply and this week, it rallied nearly 10%.

Promising reversal formation on the daily charts and bullish candle on daily and weekly charts indicate further uptrend in the near future.

For the positional traders, Rs 345 or 50-day SMA would be the key level to watch out for. If the stock manages to trade above the same, then we could expect an uptrend continuation wave up to Rs 380-390.

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