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Last Updated : Nov 20, 2020 08:20 AM IST | Source: Moneycontrol.com

Trade Spotlight: Tata Chemicals, Graphite India, & BEL in focus

Stocks like Tata Chemicals which fell by over 6 percent, Graphite India rallied by over 14 percent, and Bharat Electronics rose nearly 7 percent were some of the stocks in focus.

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Indian markets witnessed profit-taking on November 20 pushing benchmark indices below crucial support levels. The S&P BSE Sensex fell by about 600 points while the Nifty50 closed below 12800 which was the crucial support.

Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 580 points to 43,599 while the Nifty50 closed 166 points lower at 12,771.


Sectorally, the selling pressure was visible in banks, finance, telecom, realty, and metal stocks while some action was seen in consumer durables, power, and FMCG stocks.

Stocks like Tata Chemicals which fell by over 6 percent, Graphite India rallied by over 14 percent, and Bharat Electronics rose nearly 7 percent were some of the stocks in focus.

We have collated views of experts on what investors should do when the market resumes trading on 20 November:

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

Tata Chemical: For the swing traders Rs 340 should be the sacrosanct level

The stock rallied over 8 percent on November 19. It opened on a positive note and quickly surpassed Wednesday’s high with strong volume activity.

Despite weak market conditions, Tata Chemical maintained its strong momentum throughout the day. On the short-term time frame, the stock has formed a strong price volume breakout pattern.

The texture of the pattern suggests breakout action will continue in the near term if the stock succeeds to trade above Rs 340 level.

For the swing traders, Rs 340 should be the sacrosanct level. If the stock trades above the same then we can expect the uptrend to continue towards Rs 380.

Graphite India: Momentum likely to continue

The stock has rallied over 15 percent so far in the current week. 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.

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

For the breakout traders, Rs 200 and Rs 195 would be the key levels to watch, and the overall chart structure suggests that if the stock sustains above the same then breakout continuation texture likely to continue up to Rs 250.

BEL: Stock is heading towards the resistance of Rs 112 

From the last couple of days, the stock has been soaring rapidly. On November 19, despite weak market conditions, the stock maintained strong momentum throughout the day.

In this month alone, the stock has rallied nearly 20 percent and after a long time, it managed to trade above Rs 100 mark.

However, the medium-term chart formation is still on the negative side and that would create doubt in the traders' minds. Currently, the stock is heading towards its important resistance level of Rs 112.

The short-term texture of the stock is positive, but Rs 112 should act as important resistance for the BEL.

On the flip side, a close below Rs 100 may trigger further weakness up to Rs 92 support level.

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 Nov 20, 2020 08:20 am