Trade Spotlight: What should investors do with Adani Ports, HEG & Glenmark Pharma?

Adani Ports gained over 12 percent with strong volumes, HEG rose more than 18 percent, and Glenmark Pharma rallied over 6 percent on Tuesday were some of the stock in focus.

April 07, 2021 / 08:21 AM IST
 
 
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Indian market closed in the green on Tuesday ahead of the outcome of the Monetary Policy Committee (MPC) on Wednesday. The RBI MPC is expected to maintain the status quo on rates to keep the system adequately liquidated and boost growth.

Sectorally, buying was seen in healthcare, industrials, and infrastructure stocks, while selling was visible in banks, public sector, consumer durables, and energy stocks.

Adani Ports gained over 12 percent with strong volumes, HEG rose more than 18 percent, and Glenmark Pharma rallied over 6 percent on Tuesday were some of the stock in focus.

Here is what experts said about these stocks.

Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Close

Adani Ports:

Adani group is in a different orbit of its own as it is consistently defying gravity to hit new lifetime highs and the last trading session was no exception to this rule as it registered new life high once again on massive volumes.

Based on trend line studies of long-term charts, a target of Rs 938 can be projected.

However, volumes on this counter are exceptionally high, and whenever such unusual volumes are witnessed in any counter that will pave the way for the corrective/ consolidation phase in the next 1 to 3 trading sessions.

Hence, short-term traders will be better off by taking profits in the next session whereas fresh buying opportunity can be considered on a dip into the zone of Rs 784 – 764 by placing a stop below Rs 743 on a closing basis.

HEG:

This counter appears to have registered a consolidation breakout with a 6-week range-bound move in the zone of Rs 1685 – 1408 levels. This itself is giving a range target around Rs 1962 levels.

However, as this counter appears to be coming out of its prolonged bear phase as it was beaten down from the highs of Rs 4955 to a low of Rs 409 levels, it can ideally retrace much of the lost ground.

Therefore, post this breakout a bigger target of Rs 2145 which is 38.2% retracement of its entire fall can’t be ruled out. Hence, positional traders with multi-month time horizons are advised to continue with their holding and look for targets placed around Rs 2100 levels.

Fresh buying is also advisable by adopting a multi-pronged strategy of buying now at the market and accumulating on a dip if any into the zone of Rs 1665 – 1587 by placing a stop below Rs 1530.

Glenmark Pharma:

This counter registered a breakout on multiple technical parameters with relatively higher volumes with a comfortable close above its 200-day simple moving average.

Moreover, on the weekly charts, it seems to have broken out of some sort of 17-week descending channel. Hence, as long as it sustains above its 100 days moving average (490) a bigger target of Rs 549 can be expected. Therefore positional traders should buy into this counter with a stop below 490 on a closing basis.

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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