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Last Updated : Jul 14, 2020 08:04 AM IST | Source: Moneycontrol.com

Trade Spotlight: Dixon Tech, Britannia, L&T Infotech, Dr Lal & Escorts in focus

Dixon Technologies, Britannia Industries, L&T Infotech, Dr Lal Pathlabs & Escorts are some of the stocks that hit a fresh 52-week high on July 13.

 
 
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The Indian market remained volatile throughout July 13 trading session, with benchmark indices witnessing profit-taking at higher levels, an indication that the momentum could be waning.

The Nifty50 witnessed selling pressure near 200-DMA placed near 10,900 for the sixth day in a row. Experts suggest caution and advise investors to avoid taking any fresh trades on either side.

Dixon Technologies, Britannia Industries, L&T Infotech, Dr Lal Pathlabs & Escorts are some of the stocks that hit a new 52-week high during the day.

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Here is an expert's technical views on what investors who missed the price action should do:

Expert:  Vikas Jain, Senior Research Analyst at Reliance Securities

Dixon Technologies: HOLD| Trail Stop Loss to Rs 5,800

The stock is in a continuous uptrend and has doubled from the 200-day average support it tested back on March 20 which was near Rs 3,000.

We believe it still has not shown any price reversal and scaling new highs as it is still holding above its 20-day average support line.

One can continue to hold the stock for higher levels and keep a trailing stop loss of Rs 5,800 from current levels.

The only concern is that the last up move is on very low volumes, so one has to maintain the trailing stop loss for their existing holdings.

Britannia Industries: Buy on Declines| Target: Rs 4,300

The stock is one of the best outperformers in the FMCG sector, trading at an all-time high level and we continue to remain positive with a higher target of Rs 4,300 over the next few months.

Any price correction near to its support line of Rs 3,500 could be a good opportunity to add longs

The stock has surpassed its multi-year top congestion placed around Rs 3,400-3,600 levels over the last three years with strong volumes. The resistance area will now act as strong support on the downside

The weekly RSI is still trading below 70 levels which indicates there is enough up move left from the current levels.

L&T Infotech: Book Profits |Avoid Fresh Longs

The stock scaled its previous lifetime high of 2,050 levels but the volumes are not so supportive in the current up move.

Daily RSI is also trading near 88 levels, which indicates that the upside is being capped and can witness some profit-booking in the near future.

We believe that one should book profit at current levels and wait for some decline to enter near to its long-term moving and multiple moving average levels near 1,750-1,800 levels.

Dr. Lal Path Labs: HOLD |Target: Rs 2,200

The stock is in a strong uptrend along with the sector which is in great momentum after the breakout seen from its multiple averages placed near 1,600 levels.

We believe the stock has the potential to reach the higher end of the range placed around Rs 2,200, which is also the 38.2 percent of the upmove from its breakout over the next few months.

One can continue to hold the stock and can look to buy on declines if it shows weakness along with any broader market correction.

Escorts: Book Profits |Avoid Fresh Longs

The sector is witnessing some weakness after a 61.8 percent upmove from its 52-week lows and is trading near the 200-day average.

The stock is one of the high betas in the F&O space and the reversal will be sharp from current levels as was the sharp upmove. We will advise investors to book profits at current levels and wait for some decline.

Risk reward is not in the favour of longs and the RSI is turning downwards from higher levels, which confirms a reversal in the near term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jul 14, 2020 08:04 am
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