Trade Spotlight: What should investors do with Equitas Small Finance, Adani Power, Ujjivan Small Finance?

Equitas Small Finance Bank, which was locked in the upper circuit of 20 percent, Adani Power rose nearly 10 percent, and Ujjivan Small Finance Bank rose more than 7 percent

March 05, 2021 / 08:54 AM IST
 
 
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Indian market snapped three days of winning streak and closed lower on March 4. Nifty though managed to defend the 15,000 support, which is a positive sign for the bulls. The S&P BSE Sensex fell nearly 600 points to end at 50,846 while the Nifty50 plunged 164 points to close at 15,080 on Thursday.

Some stocks that were in focus are - Equitas Small Finance Bank, which was locked in the upper circuit of 20 percent, Adani Power rose nearly 10 percent, and Ujjivan Small Finance Bank rose more than 7 percent.

We have collated views from experts on what investors should do with these stocks when the market resumes trading on March 5:

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

Equitas Small Finance:

Close

The stock hit a 20 percent upper circuit on March 4. It opened gap up and quickly surpassed its previous 52-weeks high of Rs 51.60 with strong volume activity. Despite weak market conditions, Equitas Small Finance maintained its strong momentum throughout the day.

In the short term, 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 54.

For the swing traders, 54 should be the sacrosanct level. If the stock trades above the same then we can expect the uptrend to continue up to 69-75.

Adani Power:

In this month so far, the stock has rallied over 25 percent. On March 4, Adani Power made a fresh 52-week high of Rs 71.35 and after a strong intraday session, it closed above Rs 70-resistance mark, which is broadly positive.

The important thing is the volume activity, modest volume activity post 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 continuation formation that indicates bulls are clearly dominating the price action.

For the breakout traders, 68 and 66.5 would be the key levels to watch. The overall chart structure suggest that if the stock sustains above the same then breakout texture is likely to continue up to 75-84.

Ujjivan Small Finance Bank:

After a sharp correction, the stock is trading near 200-Day SMA. Post short term weakness, the stock is hovering in the range of 33 to 37.

The medium-term texture of the stock is bullish but at present, it is witnessing non-directional activity perhaps, traders are waiting for either side breakout. For the bulls, 37 would be the important breakout level to watch.

And, if the stock manages to close above the same, we can expect a quick uptrend rally towards 42. On the flip side, trading below 33 may increase further weakness up to 29.50.

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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