Big Movers on D-St: What should investors do with JSW Energy, APL Apollo and IDFC First Bank?

The Indian market rose for the second day on Thursday, tracking positive global cues. The S&P BSE Sensex rose more than 150 points while the Nifty50 closed above 17,300 levels.

Sectorally, buying was seen in metals, capital goods, realty, and power stocks, while FMCG and telecom names witnessed selling pressure.

Stocks that were in focus included names like JSW Energy, which was up nearly 13 per cent, APL Apollo, which rose more than 3 per cent, and IDFC First Bank, which hit a fresh 52-week high and closed with gains of nearly 2 per cent on Thursday.

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

JSW Energy: Buy
Last Thursday, the stock rallied nearly 12 per cent. After a short-term correction, it took support near the 200-Day SMA (Simple Moving Average) and bounced back sharply.

On the weekly and daily charts, the scrip has formed a strong bullish candle which supports a further uptrend from current levels.

In addition, it successfully cleared the 50-Day SMA or 312 resistance zone and succeeded to close above the same, which is largely positive.

For trend-following traders, Rs 315-312 could be the key level to watch. If the stock manages to trade above the same, then we can expect an uptrend continuation wave up to Rs 345-355 levels.


APL Apollo: Buy
The stock has rallied over 10 per cent so far in the week. On Thursday, it rose 4 per cent and registered a fresh all-time high of Rs 1,177.

On the daily and weekly charts, APL Apollo has formed a promising uptrend continuation formation. It has also formed a long bullish candle, which is broadly positive.

The medium-term texture of the stock is on the positive side, but we could see some profit booking if the stock succeeds to close below Rs 1,100.
A close below Rs 1,100 could take the stock towards Rs 1,050-1,035. On the flip side, as long as it is trading above Rs 1,100, the uptrend texture is intact. Above the same, it could move up to Rs 1,200-1,225 levels.

IDFC First Bank: Buy
Post a quick short-term correction, the stock took support near Rs47 and reversed sharply. Post reversal, it has rallied over 8 per cent so far this week and also formed a long bullish candle on the weekly charts.

In addition, on the daily charts, it is consistently forming a higher bottom formation, indicating a continuation of the uptrend in the near future.

For the bulls, 50 or 20-Day SMA (Simple Moving Average) would be an important support level to watch. Above this, it could move up to Rs 60-64. On the flip side, trading below Rs 50 may increase further weakness up to Rs 47-45 levels.

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