Big Movers on D-St: What should investors do with RIL, ICICI Bank, Kotak Mahindra Bank post Q3 results?

Indian markets closed lower on Friday tracking muted global cues. The S&P BSE Sensex fell more than 200 points while Nifty50 managed to hold on to 18000 levels last week.

Sectorally, buying was seen in power, utilities, banks, and the public sector while selling was seen in telecom, consumer durables, FMCG, and metals.

Stocks that were in focus include names like Reliance Industries which was down over 1%, ICICI Bank which closed flat but with a positive bias ahead of results, and Kotak Mahindra Bank which also closed flat but with a negative bias.

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

ICICI Bank: Buy
On the weekly chart, the counter has broken out of a triangle formation, while on the daily chart, it is travelling in a downward-sloping channel and has retested its previous breakout level of Rs 838, where it has formed a base.

The counter's overall structure is favourable for long-term investors, as it is trading above the 9 and 200-SMA moving averages.

The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.

On the higher side, Rs 900 is acting as an important psychological level. Above this, we can expect a level of Rs 920+ in the near-short term, while on the lower side, Rs 835 will act as a major support during any correction.

Going forward, the bullish trend is expected to continue, and investors can benefit from buying at current levels and selling at higher levels.

Reliance Industries: Buy
The counter has witnessed a breakout of the cup and handle formation pattern on the weekly chart and a triangle formation breakout on the daily chart. It is being retested near its breakout levels of Rs 2400.

The structure of the counter is good for long-term investors, as Rs 2300–2400 is a strong demand zone from where one can take positions for Rs 2800 levels. Above this, we can see a new leg of rally towards 3000+ levels.

On the downside, 2300 is a major support and below this, 2150 is the next level.

Kotak Mahindra Bank: Avoid
The counter has been moving in a long consolidation range since November 20 on the weekly chart. The formation of the counter is a little distorted, as it is trading below all important moving averages. Presently, it is placed near the demand zone around Rs 1640-1660.

On the downside, Rs 1740 is the important psychological support level, below which we can expect the 1700 level during any correction, while on the upside, Rs 1800 is the resistance at the 20-SMA, above which we can expect the Rs 1824 level.

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