Big Movers on D-St: What should investors do with Deepak Fertilisers, Adani Gas, and Adani Power?

Indian market snapped its six-day winning streak and closed in the red on Thursday amid selling at higher levels. The S&P BSE Sensex and Nifty50 closed flat with a negative bias.

Sectorally, buying was seen in healthcare, IT, metals, and consumer durables while some selling was visible in telecom, realty, and public sector stocks.

Stocks that were in focus include Deepak Fertilisers which rose 5 per cent, Adani Total Gas which hit a fresh 52-week high and closed with gains of over 2 per cent, and Adani Power which closed with gains of nearly 2 per cent.

All three stocks hit a fresh 52-week high in intraday trade on Thursday.

Here's what Akhilesh Jat, Category Manager - Equity Research, CapitalVia Global Research recommends investors should do with these stocks when the market resumes trading today:

Deepak Fertilisers: Rs 800 would be the key level to watch
The stock made a fresh all-time high of Rs 839.60, and it also hit the 5 per cent upper circuit. The stock has rallied over 40 per cent so far in this quarter.

On the daily and weekly charts, the stock has formed a promising breakout continuation formation that indicates bulls are in total control and the uptrend is likely to continue in the near term.

For the breakout traders, Rs 800 would be the key level to watch, but the overall chart structure suggests that if the stock sustains above the same (Rs 800) then a breakout continuation texture will continue that could take the stock towards Rs 880-900.

On the flip side, a close below Rs 800 could push traders to exit from trading long positions.

Adani Power: Rs 330 could be the key level to watch
The stock has rallied over 30 per cent so far in this quarter. It made a fresh all-time high of Rs 354 on Thursday.

On the daily and intraday charts, the stock is forming a higher bottom series pattern which indicates the continuation of the uptrend in the near future.

For the trend following traders now, Rs 330 could be the key level to watch. If the stock manages to trade above the same, then we expect an uptrend continuation wave to take the stock up to Rs 370 – 380.

However, below Rs 330, the uptrend would be vulnerable.

Adani Total Gas: Rs 3,200 would act as a key support level
The stock hit a fresh all-time high of Rs 3,389 on Thursday. In this quarter so far, it rallied over 40 per cent. After a Rs 2,750 breakout, the stock is consistently forming a higher bottom formation which is broadly positive.

The short-term texture of the stock is positive but due to temporary overbought conditions, we could see some profit booking at higher levels.

For the trend following traders now Rs 3,200 would act as a key support level, above which it could move up to Rs 3,500-3,600.

On the flip side, a short-term correction is possible below Rs 3,200. Below which, the index would retest the level of Rs 3,000-2,900.

Short-term traders should remain cautious and be very selective as there is a risk to get trapped at higher levels.

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