Big Movers on D-St: What should investors do with BLS International, Federal Bank and IRB Infrastructure?

Indian market recouped losses and closed higher on Monday. The S&P BSE Sensex rose nearly 500 points while the Nifty50 closed above 17300 levels.

Sectorally, buying was seen in utilities, power, banks, the public sector, and energy while selling was seen in metals, realty, telecom, and capital goods.

Stocks that were in focus included names like BLS International which rose more than 10%, Federal Bank which pared gains after hitting a fresh 52-week high, and IRB Infrastructure Developers which gained nearly 11% on Monday.

Here's what Vikas Jain - Technical Research Analyst at Reliance Securities recommends investors should do with these stocks when the market resumes trading today:

BLS International: Book Profit
The stock made a new high after its breakout from 160 levels. We believe that it has completed its bullish stance over the past 8 months and doubled from its earlier highs in a very short span of time.

Post the corporate action of bonus, the momentum is swift. The monthly Relative Strength Index (RSI) is trading at 87 levels and the daily RSI also looks overbought. We expect some retracement in the stock and it may retest 258 levels (High of Jul 22).

Federal Bank: Hold| Target: 160
The stock has started to outperform after a long time in the current quarter.

It has made higher bottoms on the weekly charts in the range of 105-109 levels and the indicative target comes to 160 based on the current setup.

On the downside, the stock has crucial support near the Rs 120-124 levels which is closer to the band of short to medium-term averages.

IRB Infra: Hold |Target: 270
The stock has witnessed a sharp breakout from its 200-Day average with strong volumes after a double bottom formation near 195 levels.

It should face some resistance at 270 and a crossover of the same would extend the up move to 310-320 levels over the next few months.

RSI has pierced upwards on the weekly candle indicating the positive momentum to continue from current levels.

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