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Last Updated : Aug 14, 2020 08:16 AM IST | Source: Moneycontrol.com

Trade Spotlight: Bharat Forge, Ashok Leyland & Galaxy Surfactants in focus

The market seems to be moving in a range and experts advise investors to wait for a break above 11375 while on the downside 11250-11225 will act as a support.

 
 
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Indian market slipped for the second day in a row on Thursday but the Nifty managed to hold on to 11,300 levels after retesting its 5-Days EMA.

Let’s look at the final tally on D-Street for Thursday – the S&P BSE Sensex fell 59 points to 38,310 while the Nifty50 was down 8 points to 11300.

Sectorally, selling pressure was seen in telecom, healthcare, banks, and energy stocks while some action was seen in capital goods, industrials, consumer durables, and metals stocks.

Close

The market seems to be moving in a range and experts advise investors to wait for a break above 11,375 while on the downside 11,250-11,225 will act as a support.

Bharat Forge closed with gains of more than 15 percent on Thursday as brokerage firms raised their target price. Ashok Leyland closed with gains of more than 13 percent despite June quarter loss as investors cheered the opportunity in the defence space.

Galaxy Surfactants was also buzzing in trade on Thursday as the stock hit its fresh 52-week high of Rs 1944.40.

We have collated views of an expert on what investors should do when the market resumes trading on August 14:

Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

Galaxy Surfactants: Rs 1,800 and Rs 1,725 should be the key levels to watch

The stock has rallied over 16 percent so far in the month of August. On August 13, Galaxy Surfactants registered a fresh all-time high of Rs 1,949.50 and after a strong and volatile intraday session, the stock closed above Rs 1,800 resistance mark, which is broadly positive.

The important thing is volume activity. The incremental volume activity post the breakout clearly indicates a high chance of further uptrend from current levels.

On the daily and weekly charts, the stock has formed a strong promising price volume breakout formation that indicates bulls are clearly dominating the price action.

For the breakout traders, Rs 1,800 and Rs 1,725 should be the key levels to watch. The overall chart structure suggests that if the stock sustains above the same then the breakout continuation texture is likely to continue up to Rs 2,000.

Bharat Forge: For swing traders, Rs 460 should be trend decider level

Post-200-Day SMA breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 400 to Rs 500 within a short period of time. That rally was price dominating and the volume activity has been modest.

On the daily and weekly charts, the stock has formed a robust breakout continuation pattern which suggests that the uptrend momentum is likely to persist in the near future.

However, on a short-term time frame, the momentum indicators indicate that the stock is in an overbought zone and the uptrend would be vulnerable if it closes below Rs 460 mark.

For swing traders, Rs 460 should be the trend decider level. We can expect further uptrend up to Rs 540 as long as it trades above Rs 460 levels.

However, a close below the said levels would push traders to exit out from their trading long positions.

Ashok Leyland: Fresh buying can be considered now and on dips

After a strong uptrend rally from Rs 42 to Rs 58, the stock was hovering between Rs 46.50 to Rs 53.50 price ranges.

However, on Thursday, the stock not only surpassed its previous resistance of Rs 54 but comfortably managed to sustain above the same.

The sharp 12 percent intraday price volume rally clearly suggests that the stock is into the strong hands and uptrend formation is likely to continue in the short run.

In addition, on daily and weekly charts, the stock has formed a higher low series formation followed by strong bullish candlestick patterns on daily and weekly charts, which supports further uptrend from current levels.

Unless it trades below Rs 55, positional traders can retain an optimistic stance and look for a target of Rs 70. Fresh buying can be considered now and on dips if any between Rs 61 and Rs 58 levels with a stop loss below Rs 55.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 14, 2020 08:16 am
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