Big Movers on D-St: What should investors do with Apollo Hospitals, Adani Power and IPCA Laboratories?

Indian market rose for the second day in a row on Friday pushing the S&P BSE Sensex above 56,000 on positive global cues. The Nifty50 also reclaimed 16,700 levels in the morning trade.

Sectors that were in focus include IT, energy, capital goods, and oil & gas stocks while some pressure was seen in power, utilities, telecom, and FMCG.

Stocks that were in focus on Thursday include names like Apollo Hospitals, Adani Power, and IPCA Laboratories.

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

Apollo Hospital: Buy
After a long correction, the stock took support near the Rs 3,400 mark and bounced back sharply. After a quick pullback rally, once again it witnessed some profit booking at a higher level.

We are of the view that the short-term texture of the stock is non-directional, and traders are waiting for the either side to breakout.

Rs 3,825 or its 25-day SMA would be the important breakout level to watch out for bulls. And if the stock manages to close above the same, we could expect a quick uptrend rally towards Rs 4,000.

On the flip side, trading below Rs 3,550 may increase further weakness up to Rs 3,400-3,300.

Adani Power: Rs 280-275 key support
The stock has rallied over 55 per cent so far in this quarter. After a sharp surge, eventually, it took the resistance near Rs 344.

Currently, the stock is witnessing profit booking at higher levels. In this week alone, it has corrected sharply by nearly 10 per cent.

We are of the view that the stock is extremely volatile and there is a strong possibility of further downside from current levels.

However, the medium-term texture is still on the positive side. For the traders, Rs 280-275 would be the key support level.

Below the same, it may trigger short-term correction till Rs 260-255. On the flip side, as long as it is trading above Rs 275, the uptrend formation is intact. Above which, it could retest the level of Rs 320-340.

IPCA Lab: Oversold
The stock has corrected by over 15 per cent so far in this quarter. For the last couple of weeks, the stock is consistently trading below its 20-Day SMA and on daily charts, it is holding correction continuation formation.

We are of the view that the short-term texture of the stock is weak but oversold. For traders, now Rs 890 would be the key level to watch out for.

There is a strong possibility of a quick pullback rally which is not ruled out if the stock succeed to trade above Rs 890.

Above which, it could move up to Rs 925-950. On the flip side, below Rs 869, a fresh round of selling is possible. As a result, the chances of hitting Rs 850-835 would turn bright.

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