Big Movers on D-St: What should investors do with Century Textiles, Nykaa and Indian Energy Exchange?

Indian market snapped its four-day losing streak on Monday to close in the green. S&P BSE Sensex rose over 700 points while Nifty50 closed above 18,000 level.

Stocks that were in focus include names like Century Textiles which was up over 3%, Nykaa which was up more than 4% and Indian Energy Exchange which closed with gains of nearly 5%.

Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities recommends investors should do with these stocks when the market resumes trading today:

Century Textiles – Buy and hold
The stock is currently placed a tad above its prior point of polarity, which was placed at around Rs 650. The key technical indicators reversed from the dip oversold zone on the short-term timeframe chart and are on the verge of a bullish crossover.

In the past, the stock witnessed a smart recovery after an identical bullish cross-over in the key technical indicators.

This could take the stock towards Rs 750-785-815-825 in the short term. However, a convincing move below its prior point of polarity will invalidate probable up-move in the stock.

Nykaa – Sell on rise
The stock bounced after eight consecutive down ticks and breached its prior daily falling trend. Currently, the stock is trading below its major moving averages.

In the past, its downward-sloping moving averages have capped the up-move and dragged the stock lower.

The key technical indicators are negatively poised on major timeframe charts. The stock may resume its southward journey post a pullback.

On the higher side, the stock may face hurdles around its 20-day and 50-day EMAs, which are currently placed at Rs 165 and Rs 180, respectively. In case of further decline, the stock may find support at around the psychological level Rs 100.

Indian Energy Exchange – Sell on rise
The stock respected its 50-month EMA (placed at Rs 126.50), as it reversed before testing that moving average and breached its prior daily falling trend.

Bullish divergence in the short-term technical indicators signals that the stock may witness a short covering, which could support it to recover partial damages.

On the higher side, its short-term supply zone (Rs 150-155) will cap the up-move. However, a convincing move below its 50-month EMA may negate probable short covering in the stock and may attract a fresh sell-off.

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