Big Movers on D-St: What should investors do with Cochin Shipyard, Allcargo Logistics and Indian Hotels?

Indian market snapped its 2-day losing streak to close in the green on Friday tracking positive global cues.

S&P BSE Sensex rallied nearly 1,200 points while Nifty50 closed above 18,300 levels.

Stocks that were in focus included names like Cochin Shipyard which was up nearly 9%, Allcargo Logistics which rose nearly 8%, and Indian Hotels which fell by nearly 7%.

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

Cochin Shipyard: Buy
The counter has witnessed a breakout of the flag formation on the daily chart with strong volume. It retested its previous breakout levels at around Rs 560 in Friday's trading session and began a new leg of the rally.

In the longer time frame, it has broken above the neckline of the pattern placed around Rs 600 levels and moved to new all-time high levels.

The counter's overall structure is very traditional and bullish. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.

On the higher side, Rs 700 is an immediate resistance; above this, we can expect the rally to reach Rs 800+ levels, while on the lower side, Rs 500 is a crucial support in any correction.

Allcargo Logistics: Buy
The counter is coming out of a symmetrical triangle pattern formation on the daily chart. While on a weekly basis it has witnessed a breakout from a flag formation with a huge volume.

The overall structure is very lucrative, as it trades above its all-important moving averages. On the upside, Rs 480 is an immediate resistance area.

A close above Rs 480 could take the stock towards Rs 500 levels in the near term. On the downside, Rs 400 is a major support for any correction.

The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.

Indian Hotels: Buy
The counter is in a classical uptrend, but it is travelling in the long consolidation range of Rs 300–350. The counter's structure appears to be good as well, but it closed today's trading session below the 9, 20, and 50-SMA moving averages and above the 100 and 200-SMA moving averages.

On the lower side, Rs 300 is acting as an important support; below this, it will also confirm a breakout of the double top formation, and we can expect a downfall to Rs 260 levels in any major correction.

On the higher side, Rs 350 is the important resistance; above this, Rs 380 is the target for the near term.

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