Big Movers on D-St: What should investors do with Solar Industries, Granules India and PNB?

The Indian market snapped a 7-day losing streak on Friday and closed in the green. The S&P BSE Sensex rallied more than 1,000 points while the Nifty50 reclaimed 17,000 levels on a closing basis.

Sectorally, buying was seen in telecom, metals, banks, consumer durables, and power stocks while some profit booking was seen in oil & gas stocks.

Stocks that were in focus included names like Solar Industries which rose nearly 5 per cent, Granules India which rose over 6 per cent, and Punjab National Bank which closed with gains of over 5 per cent on Friday.

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

Solar Industries: Buy
The counter has witnessed a Channel breakout on the weekly chart and the stock is in the formation of higher highs and higher lows on the daily chart for the last four consecutive days.

It has now given a meaningful correction to retest the previous breakout level of Rs 3,400. The stock is starting the next leg of a rally where Rs 4,000 is an immediate psychological resistance level.

A close above Rs 4,000 could take the stock towards the Rs 4,500 level. On the downside, Rs 3,550 is major support for any correction.

Granules India: Buy
The counter is coming out of a long consolidation with strong volumes. The overall structure is very bullish as it trades above most of its all-important moving averages.

The pattern suggests an immediate target of Rs 370, while it has the potential to move further upside till Rs 390 levels. On the downside, Rs 300 will act as an immediate support level.

ADX (average directional index) and MACD (Moving average convergence divergence) are supporting the current strength whereas momentum indicator RSI (relative strength index) is also positively poised.

PNB: Buy
In Friday’s trading session, the counter took support from the 200-SMA with substantial volumes. On the upside, Rs 38 is the susceptible level.

A close above Rs 38 could take the stock towards Rs 42 in the short time frame. On the downside, Rs 34 is an important support level. The stochastic indicator is witnessing a positive crossover from the oversold territory.

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