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Trade Spotlight: What should investors do with Godrej Consumer Products, Godrej Industries & Siemens?

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today

May 14, 2021 / 07:37 AM IST
 
 
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Benchmark indices closed with losses of about 1 percent each on Wednesday. Bears took control of D-Street for the second consecutive day in a row pushing Nifty50 below 14700 levels.

Sectorally, selling pressure was seen in metals, banks, oil & gas, and energy while some buying was seen in auto stocks.

Stocks that were in focus include Godrej Consumer Products which rallied over 22 percent to hit a fresh 52-week high, Godrej Industries that rose more than 9 percent, and Siemens which closed with gains of nearly 3 percent. All the stocks hit a fresh 52-week high on Wednesday.

Indian market remained shut on Thursday on account of a public holiday.

Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

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

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Godrej Consumer Products: Strong uptrend

On Wednesday, the stock opened with a huge gap and rallied over 20 percent. The sharp intraday price surge and incremental volume activity suggest that the positive momentum is likely to continue in the near term.

The stock has formed a strong price-volume breakout pattern which is broadly positive for the Godrej Consumer Products.

For the trend following traders, Rs 840 and 820 would be the important support level to watch. And if the stock manages to trade above the same, we can expect a continuation of the uptrend wave up to Rs 910-945.

On the flip side, the uptrend would be vulnerable if the stock close below Rs 820.

Godrej Industries: Momentum to continue

On May 12, post strong opening, the stock surpassed Rs 550 resistance and quickly rallied up to Rs 610. The stock trimmed some gains in the second half of the day and finally closed near Rs 550 resistance level.

A sharp price surge and incremental volume activity suggest that positive momentum is likely to continue in the near term. However, technically we shall get a breakout confirmation only if it manages to close above Rs 580.

For the bulls, Rs 580 would be an important breakout level to watch. And if it closes above the same then we can expect a continuation of the uptrend wave up to Rs 610-635.

On the flip side, if the stock starts trading below Rs 525, the weakness may increase further and take the stock towards Rs 490.

Siemens: Stock in an uptrend

The stock has rallied nearly 8 percent so far in the week. On May 12, Siemens made a fresh all-time high of Rs 2143.50, and after a strong intraday session, the stock managed to close above the psychological mark of Rs 2000, which is broadly positive.

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

On the daily and weekly charts, the stock has formed a strong promising price volume uptrend continuation formation. For the swing traders, Rs 1950 and 1900 would be the key levels to watch.

The overall chart structure suggests that if the stock starts trading above the same then the breakout continuation texture is likely to continue up to Rs 2145-2200.

Disclaimer: The views and investment tips expressed by the expert on Moneycontrol.com are his 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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