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Trade Spotlight: Vedanta, Firstsource Solutions & Asahi India Glass in focus

Stocks like Vedanta that rose over 8 percent, Firstsource Solutions surged more than 15 percent, and Asahi India Glass closed with gains of more than 8 percent were some of the stocks which bucked the trend.

December 28, 2020 / 08:33 AM IST
 
 
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Benchmark indices closed the week which ended on December 24 on a mixed note. The action was largely stock-specific where small & midcap indices underperformed.

The S&P BSE Sensex closed flat but with a positive bias while the Nifty50 fell 0.08 percent during the week. The S&P BSE Midcap index fell 0.7 percent, and the S&P BSE Smallcap index was down 0.53 percent in the same period.

Stocks like Vedanta which rose over 8 percent, Firstsource Solutions (up over 15 percent), and Asahi India Glass (up over 8 percent) were some of the stocks which bucked the trend.

We have collated views of experts on what investors should do when the market resumes trading on 28 December:

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

Close

Vedanta: Breakout likely in the near-term

The stock rallied over 9 percent on December 24 on Thursday after opening with a gap up and it quickly surpassed its previous 52-week high of Rs 153.50.

Strong gap-up opening near resistance along with incremental volume activity indicates that the uptrend texture will continue in the near term.

On the short-term time frame, the stock has formed a strong price volume breakout pattern. The texture of the pattern suggests breakout action likely continue in the near term if the stock succeeds to trade above the Rs 153 level.

For the swing traders, Rs 153 should be the sacrosanct level, and if it trades above the same, then we can expect the uptrend to continue up to Rs 185-191.

Firstsource Solutions Ltd: Positional traders should watch out for Rs 86 support

After a strong uptrend rally from Rs 35 to 75, the stock was hovering in the range of Rs 70 to 80. However, on the daily as well as on the weekly charts, the stock has formed a strong higher bottom series formation.

The stock is consistently making higher high and higher bottom series patterns which is broadly positive for the FSL.

The stock is also trading well above the medium-term averages along with positive SAR series which suggests that the uptrend structure is likely to continue in the medium-term.

For the positional traders, Rs 86 should act as an important support level. And, if the stock manages to trade above the same then we can expect one more short-term uptrend wave up to Rs 115.

Asahi Ind Glass: Bulls are clearly dominating the price action

On Thursday, the stock rallied over 10 percent to make a fresh 52-week high of Rs 296. It managed to close above Rs 265 mark, which is broadly positive.

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 formation that indicates bulls are clearly dominating the price action.

For the breakout traders, Rs 265 and Rs 260 would be the key levels to watch, and the overall chart structure suggests if the stock sustained above the same then breakout continuation texture likely to continue up to Rs 300-325.

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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