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Trade Spotlight: What should investors do with Asian Paints, Tata Chemicals, Indus Towers and Oberoi Realty?

Here's what Rajesh Palviya, VP-Technical and Derivative Research, Axis Securities, recommends investors should do with the 3 stocks when trading resumes today

September 27, 2021 / 07:50 AM IST
 
 
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It was a good week for the market, as the BSE Sensex went past 60,000 and the Nifty50 rose above 17,900 on September 24. It market rose more than 1.5 percent during the week, the fifth such successive period of gains.

The broader market, however, lagged. The Nifty midcap 100 and smallcap 100 indices closed mixed, falling 0.78 percent and rising 0.12 percent, respectively, on September 24.

Stocks in action included telecom tower infrastructure services provider Indus Towers, the biggest gainer in the F&O segment. It closed 13.83 percent higher at Rs 317.65 and also hit an intraday 52-week high.

Real estate stocks, too, were in focus on September 24 as the Mumbai-based developer Oberoi Realty hit a high of Rs 967 before closing with gains of 10 percent at Rs 932.

Asian Paints, one of the largest paint companies in India, was the biggest gainer on the Nifty. It, too, hit a new high of Rs 3,505 before closing with 3.85 percent gains at Rs 3,448.60. Tata Chemicals was the third biggest F&O gainer, rising 4.46 percent to Rs 884.95.

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Here's what Rajesh Palviya, VP-Technical and Derivative Research, Axis Securities, recommends investors should do with these stocks when trading resumes today:

Indus Towers

At the current close, the stock has decisively broken out of its two-year "multiple resistance" zone of Rs 285 on a weekly closing basis. This breakout was accompanied by huge volumes, representing increased participation.

On the daily and weekly charts, the stock continues to scale upward forming a series of higher tops and higher-bottom formation, indicating a sustained uptrend.

The stock has also recaptured its 200-day simple moving average (SMA) of Rs 244, which signals bullish sentiments ahead.

The stock is also well-placed above its 20, 50 and 100-day SMAs that which reconfirmed the bullish stance. Buying and accumulation range for the stock would be Rs 316-310, with the stop loss at Rs 290 and a target of Rs 350-380.

Asian Paints

The stock is in a strong up trend across all the time frames forming a series of higher tops and higher-bottom formations. The stock has rebounded sharply from its 20-day SMA (Rs 3,300), which remains an immediate support zone.

With strong gains on September 24, the stock witnessed a two-week consolidation range breakout at Rs 3,404 on a closing basis.

The breakout was accompanied by a huge volume spurt showing increased participation. Buying and accumulation range would be Rs 3,447-3,400, with a stop loss at Rs 3,300 and a target of Rs 3,550-3,650.

Tata Chemicals

With the current weekly close, the stock surpassed its previous six-week consolidation range on a closing basis, indicating resumption of an earlier up trend.

The stock is well placed above its 20, 50 and 100-day SMAs, which show rising momentum along with price rise.

The stock is in an up trend across all time frames and huge volumes at breakout zone signal rising participation in the rally.

The daily and weekly Relative Strength Index (RSI) is in a positive terrain along with a bullish crossover indicating sustained strength.

Buying and accumulation range would be Rs 886-876, with a stop loss at Rs 850 and a target of Rs 940-960.

Oberoi Realty

The stock is a strong up trend across all time frames, forming a series of higher tops and bottoms. The stock has recaptured 20 and 50-day SMAs, which remain a crucial support zone.

The stock closed at an all-time high. The weekly chart RSI has observed breakout, indicating rising strength.

This buying movement, coupled with rising volumes, indicates increased participation in every rally. Buying and accumulation range would be Rs 938-900 and the target Rs 980-1,030.

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.

 
Sunil Shankar Matkar

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