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Trade Spotlight: Eicher Motors, Jubilant Food, & Aarti Drugs in focus

Stocks like Eicher Motors which turned ex-split, Jubilant FoodWorks that rallied over 7 percent to hit a fresh 52-week high, and Aarti Drugs that closed with gains of 10 percent were in focus.
Aug 25, 2020 / 08:47 AM IST

Bulls remained in control of D-Street on August 24 pushing the S&P BSE Sensex higher by over 350 points while the Nifty50 reclaimed 11,450 levels.

Experts are of the view that the momentum on the upside is likely to continue, but there could be some resistance near 11,500-11,600 levels.

The Nifty continued with positive chart patterns like higher highs and higher lows recently, but the range now is getting narrowed.

Normally, such narrowing of the range at the highs or near the crucial resistance more often results in an important trend reversal, suggest experts.

“The Nifty on the weekly chart is making an attempt to move above the significant intermediate overhead resistance around 11,450-11,500 levels (resistance as per the concept of change in polarity),” Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

“Any lack of strength in the upside momentum near the hurdle is likely to drag the market into a sharp profit booking from the highs. Hence, one needs to be cautious about false upside breakout of 11,500,” he said.

Stocks like Eicher Motors which turned ex-split, Jubilant FoodWorks that rallied over 7 percent to hit a fresh 52-week high, and Aarti Drugs that closed with gains of 10 percent were in focus.

We have collated views of experts on what investors should do when the market resumes trading on Tuesday, 25 August:

Expert: Vikas Jain, Senior Research Analyst at Reliance Securities.Jubilant FoodWorks: HOLD | Target: Rs 2300  

The stock has given a breakout on higher side from its monthly Doji candle and crossover from its all-time high continues to augur well for the stock

The weekly RSI has closed above its average line indicating a strong breakout and the sector is also in positive momentum.

The previous all-time high of Rs 1972 levels would act as a support now and any declines near these levels would be a good opportunity to buy.

Eicher Motors: Buy| Target: Rs 2380

The stock went ex-split in the ratio of 10:1 on Monday and witnessed a volatile move, and the positive momentum is likely to continue.

On the higher side, the 200-week average would act as resistance from where it has corrected from its high of Rs 2380 levels today on an intraday basis.

Multiple supports exists between the range of Rs 1980-2030 levels on the daily charts which would protect the downside

Aarti Drugs: Book Profits  

The stock has been a strong outperformer and post the recent bonus announcements, it has further strengthened the up move

We believe that after a rapid move, we recommend investors to book profits at current levels and wait for the ex-bonus to happen.

RSI is trading at Rs 89 levels and one should avoid fresh longs, being a small-cap high beta correction will be equally sharp.

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.

Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Aug 25, 2020 08:47 am

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