Big Movers on D-St: What should investors do with Ambuja Cements, Escorts and Fortis Healthcare?

The Indian markets bounced back on Monday after suffering a near 2 per cent fall in the previous session. The S&P BSE Sensex rallied more than 300 points, while the Nifty50 closed above 17,600 levels.

Sectorally, buying was seen in FMCG, auto, oil & gas, and banks, while metal, telecom, realty and capital goods saw selling pressure.

Stocks that were in focus included names like Ambuja Cements, which rallied over 9 per cent, Escorts Kubota, which rose 8 per cent, and Fortis Healthcare gained nearly 8 per cent on Monday.

Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Ambuja Cements: Hold
In August 2022, the stock witnessed a breakout from a bullish flag pattern and extended gain subsequently. This pushed the stock from Rs 274 to a record high of Rs 572 quite rapidly.

The stock is trading near its breakout point, placed at Rs 580. The key technical indicators are positively poised on long-term as well as medium-term timeframe charts, while its short-term indicators tested the overbought zone and may reverse.

Hence, price-wise correction or time-wise correction cannot be ruled out before a fresh up-move. In case of price-wise-correction, the stock may find support around the Rs 520-510 zone.

However, a stable move above its breakout point could lead the stock towards Rs 690. Fresh long positions can be initiated on dips, as risk reward is not favourable at the current juncture, while existing ones can be held by trailing the stop loss for the desired result.

Escorts Kubota: Buy
After a higher level of reversal, the stock again respected its upward-sloping 20-day EMA (Rs 1,943) and bounced, which took it to the new high of Rs 2,123.

A substantial rise in volume and its future Open Interest signals that major market participants were in favour of the bulls. The key technical indicators are positively poised on medium-term and short-term timeframe charts. The stock has the potential to explore uncharted territory, which could take it towards the Rs 2,285-2,300 zone initially and Rs 2,500 subsequently.

In case of any decline, the stock will continue to find support around its 20-day EMA.

Fortis Healthcare: Buy
In August 2022, the stock also witnessed a breakout from a bullish flag pattern and extended gain subsequently, taking it from Rs 220 to a record high of Rs 325 rapidly.

The key technical indicators gave a buy signal on the long-term timeframe chart, while its medium-term indicators are positively poised. This could take the stock towards its breakout point, placed at around Rs 420. Fresh long position can be initiated at the current juncture and on dips towards Rs 300 for the desired action.

In case of any decline, the stock will find support around the Rs 285-280 zone.

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