Big Movers on D-St: What should investors do with BHEL, Karur Vysya Bank, and Bank of Baroda?

Indian markets pared gains and closed in the red on Thursday. The S&P BSE Sensex fell by more than 300 points while Nifty50 managed to hold on to 17,500 levels.

Sectorally, buying was seen in realty, consumer durable, and public sector banks while selling was seen in IT, FMCG, and oil & gas.

Stocks that were in focus include BHEL which rose nearly 8 per cent in a volatile market, Bank of Baroda which hit a fresh 52-week high, and Karur Vysya Bank which rose nearly 5 per cent.

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

BHEL: Buy
On Thursday, the stock rallied over 8 per cent. After a strong opening, the stock successfully cleared the short-term resistance of Rs 56 and succeeded to close above the same which is broadly positive.

On daily charts, it has formed a strong price volume breakout formation. It has also formed a bullish candle on the daily and weekly charts.

We are of the view that, as long as it is trading above Rs 55 or 200-Day SMA (Simple Moving Average), the uptrend structure is likely to continue. Above this, it could move up to Rs 60-65. On the flip side, below Rs 55, it could slip to Rs 52-51.

Bank of Baroda: Buy
After a quick short-term correction, the stock took support near 20-day SMA (Simple Moving Average) and reversed sharply.

Promising bullish candle on weekly charts and higher bottom formation on daily charts indicate further uptrend from the current levels.

For the positional traders now, Rs 120 or 20-Day SMA 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 135-140. However, below Rs 120 uptrends would be vulnerable.

Karur Vysya Bank: Buy
On August 25, the stock made a fresh 52-week high of Rs 69.40. In this month so far, it rallied over 15 per cent.

On daily and weekly charts, the stock is holding breakout continuation formation which is grossly positive for Karur Vysya Bank.

However, in the short-term time frame, momentum indicators indicate the stock is in an overbought zone, but the chance of a quick short-term price correction cannot be ruled out if the stock starts to trade below Rs 65.

For the next few trading sessions, Rs 65 would be the trend decider level for the bulls, and while sustaining above the same, we can expect the continuation of the uptrend up to Rs 70.

Further uptrend may also continue which could lift the stock to Rs 75. On the flip side, the dismissal of Rs 65 could possibly trigger a quick short-term correction up to Rs 62-60.

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