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Last Updated : Jul 13, 2020 08:30 AM IST | Source: Moneycontrol.com

Trade Spotlight: IOL Chemicals, Bharat Dynamics, Yes Bank, Firstsource Solutions in focus

Experts suggest that a break below 10,650 can lead to further profit-taking, while a break above 10,900 can give strength to the bulls.

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Todays L/H

The Indian market closed positive for the fourth week in a row. The Nifty50 held on to its crucial support of 10,650-10,700 for the week ended July 10 and is set to make an attempt to take out 200-DMA placed around 10,900.

Experts say that a break below 10,650 could lead to further profit-taking while a break above 10,900 could add strength to the bulls.


IOL Chemicals, Bharat Dynamics, Yes Bank, Astra Microwave Products, and Firstsource Solutions were some of the stocks which were in focus on July 10.

We have collated expert technical views on what investors who missed the price action should do:

Expert:  Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

IOL Chemicals: Book profits after recent rally

The last three months have been excellent for the entire pharmaceutical space. This has been one of our favourites since early May when it was hovering around 305-310. The stock price has already more than doubled from there and the momentum in the last five-six days just took off. But our immediate targets of 650-680 have already been met now.Also, the risk-to-reward ratio will not be favourable for fresh buying. Hence, we would rather advise taking some money off the table and then reassess the situation for a while.

Bharat Dynamics: Stay put in case you hold the stock| Wait for dip for fresh buying

This stock started moving upwards gradually from early April, which was then followed by a long consolidation.

However, post the India-China clash along the line of actual control on June 15, the entire defence space started buzzing and in the process, the stock prices not only came out of the consolidation phase but also went on to experience a spectacular rally in merely a month’s time.

Now, the overall structure looks extremely sturdy but again due to steep rally, the risk-reward will not be attractive for buyers.

The ideal strategy would be to stay put in case of an existing position and wait for a decent decline to accumulate this stock.

Yes Bank: 33 to 24 would be seen as a consolidation range

This stock has been one of the wealth destroyers and hence, we have stopped venturing into it ever since the entire fiasco happened a couple of years back.

We continue to avoid this counter as we do not see any real interest from market participants. As far as levels are concerned, 33 to 24 would be seen as a consolidation range.

Astra Microwave Products: Use dips towards 115-105 to buy

Ace investor and the owner of the supermarket chain D-Mart Radhakishan Damani bought a 1.03 percent stake in defence sector player Astra Microwave Products in the June quarter of the financial year 2021.

As we just said, the defence space has come into the limelight in the recent past and this stock after completing its long accumulation pattern known as ‘Rounding Bottom’ finally confirmed a breakout last month.

The higher degree chart looks promising and hence, one can use a decline towards 115-105 to accumulate this counter. We will not be surprised to see this stock marching towards 2017 highs of 150-155.

Firstsource Solutions: 36-35 has now become a sacrosanct support zone

After undergoing a stressful period for more than a couple of years, the stock has shown some signs of revival and has already undergone a base building process.

We are witnessing a steady up move in the form of ‘Higher Highs Higher Lows’ in the recent past, indicating a move towards 50-55 over the next few weeks. On the lower side, 36-35 has now become a sacrosanct support zone.

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 13, 2020 08:30 am