Big Movers on D-St: What should investors do with ICICI Lombard, Jindal Stainless and PNC Infratech?

Indian market closed in the red for the third consecutive day on Thursday, tracking weak global cues. The S&P BSE Sensex fell more than 200 points while the Nifty50 managed to hold on to 18,100 levels.

Sectorally, buying was seen in technology stocks while selling was seen in utilities, capital goods, power, and realty stocks.

Stocks that were in focus include names like ICICI Lombard which rose more than 1%, Jindal Stainless which closed with gains of nearly a per cent, and PNC Infratech also closed with gains of nearly 2% in a muted market with strong volumes.

Here's what Amol Athawale, Deputy Vice president – Technical Research at kotak securities Ltd. recommends investors should do with these stocks when the market resumes trading today:

ICICI Lombard: Buy
After a strong uptrend rally, the stock is witnessing range-bound activity near the 200-Day SMA (Simple Moving Average). On the daily and weekly charts, the stock is witnessing non-directional activity perhaps.

Traders are waiting for either side breakout. For the bulls, Rs 1270 would be the immediate breakout level to watch. And if the stock manages to close above the same, then we can expect a quick uptrend rally towards Rs 1300-1325.

On the flip side, a close below the 200-Days SMA or Rs 1200 may increase further weakness up to Rs 1180-1160.

Jindal Stainless: Buy on Dips
The stock has rallied over 65% so far in this quarter. On the daily and weekly charts, it is consistently holding above crucial support levels and is making higher high and higher low series that support the continuation of the uptrend.

However, this week, due to temporary overbought conditions, the stock witnessed profit booking at higher levels.

We are of the view that in the near future, the stock is likely to hover between Rs 195-235 price range. For traders, buying on corrections and sell on rallies would be the ideal strategy. However, below Rs 192, the uptrend would be vulnerable.

PNC Infratech: 50-DMA is likely to act as support
The stock rose by over 5% so far this week. After forming a double top formation, the stock witnessed a sharp price correction. It also formed a bearish candle on weekly charts.

We are of the view that as long as the stock is trading below the 20-Day SMA (Simple Moving Average) or Rs 290, the weak formation is likely to continue.

For bulls, 50-Day SMA or Rs 270 would be the immediate support level, above which a minor pullback rally is possible till Rs 285-288.

On the flip side, a fresh round of selling is possible only after the dismissal of 50-Day SMA or Rs 270, below which it could slip to Rs 255-250.

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