Trade Spotlight: India Cements, Siemens, & ICICI Lombard in focus

Stocks like India Cement rose nearly 5 percent, Siemens rallied more than 11 percent, and ICICI Lombard General rose over 5 percent to hit a fresh 52-week high of Rs 1467.85 on Thursday.

November 27, 2020 / 07:43 AM IST
 
 
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Indian market bounced back on November 26 with Sensex and Nifty50 rallying by about 1 percent. The S&P BSE Sensex rallied by more than 400 points while the Nifty50 rose more than 100 points but failed to close above 13,000 levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 431 points to 44,259 while the Nifty50 closed with gains of 128 points at 12,987.

Sectorally, the action was seen in metal, finance, telecom, healthcare, and banks while profit booking was seen in oil & gas space.

Stocks like India Cement rose nearly 5 percent, Siemens rallied more than 11 percent, and ICICI Lombard General rose over 5 percent to hit a fresh 52-week high of Rs 1467.85 on Thursday.

We have collated views of experts on what investors should do when the market resumes trading on 27 November:

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

India Cement: For breakout traders, Rs 145 and Rs 150 would be the key levels to watch

The stock has rallied nearly 35 percent in November alone. On Thursday, the stock made a fresh 52-weeks high of Rs 163.85 and after a strong intraday session once again the stock closed above Rs 150 resistance mark, which is broadly positive.

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

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

For the breakout traders, Rs 145 and Rs 150 would be the key levels to watch, the overall chart structure suggests if the stock sustained above the same, breakout continuation texture will likely continue up to Rs 175.

Siemens: For positional traders, Rs 1,450 should be sacrosanct support

On Thursday, the stock opened with a gap up and very quickly surpassed the previous resistance level of Rs 1444. The stock maintains a stable and positive momentum throughout the day, the intraday 12 percent rally clearly suggests the stock is in a strong uptrend, and this wave is likely to continue in the short run.

The medium-term structure of Siemens is robust, on the daily charts stock has formed Higher High and Higher Bottom series formation which clearly suggests uptrend texture will continue in the near term.

For the positional traders, Rs 1450 should be the sacrosanct support level. If Siemens manages to trade above the same, we can expect an uptrend continuation wave up to Rs 1680 in the medium-term.

ICICI Lombard: Uptrend likely to continue

On November 26, the stock has registered a fresh all-time high of Rs 1468.  In November so far, it rallied by about 20 percent.  The sharp surge in the price action surprised most of the traders.

On the daily and weekly charts, the stock has formed a breakout pattern which is grossly positive for the ICICIGI.

However, in the short-term time frame, momentum indicators indicate that the stock is in an overbought zone and high chances of quick short-term price correction are not ruled out if the stock trades below Rs 1400.

For the next few trading session, Rs 1400 should be the trend decider level for the bulls, and if sustains above the same, we can expect a continuation of uptrend towards Rs 1550.

Further uptrend may also continue which could lift the stock to Rs 1620. On the flip side, dismissal of Rs 1400 could possibly trigger quick short-term correction up to Rs 1360.

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.

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