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Trade Spotlight | What should investors do with Hero MotoCorp, IIFL Finance, Schaeffler, Balkrishna Industries, Jai Corp on Thursday?

Jai Corp has reached the momentum phase and could continue to add gains in the days to come. Stock has also broken out from the downward sloping trend line on the weekly charts.

April 28, 2022 / 07:23 AM IST
 
 
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The market shed nearly a percent following a day of sharp rally, weighed by selling across sectors. The selling pressure in Asian peers also dented sentiment.

The BSE Sensex fell more than 500 points to 56,819, and the Nifty dropped over 160 points to 17,038, while the broader markets also traded lower with the Nifty Midcap 100 and Smallcap 100 indices declining nine-tenth of a percent and six-tenth of a percent respectively.

Stocks that were in action include Hero MotoCorp which was the top gainer in the futures & options segment and Nifty50 ended with 3.85 percent gains at Rs 2,500; Balkrishna Industries which was the fourth largest gainer in derivative segment climbed more than 3 percent to Rs 2,202.60.

Among others, Schaeffler India ended at fresh closing high of Rs 2,234.90 with 6.5 percent gains; IIFL Finance hit a fresh 52-week high before closing 10 percent higher at Rs 388; and Jai Corp spiked 19.4 percent to Rs 152.35.

Here's what Vinay Rajani of HDFC securities recommends investors should do with these stocks when the market resumes trading today:

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Hero MotoCorp

The stock has recently surpassed crucial resistance of 50 days EMA (exponential moving average). Auto sector has started outperforming. Stock has started forming higher tops and higher bottoms on the daily charts.

Price breakout is accompanied by rising volumes. Stock price has broken out from last 8 weeks price consolidation. Traders and investors should continue to hold on the stock. Short term resistance is seen at Rs 2,800. Support is seen at Rs 2,240.

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IIFL Finance

The stock has broken out from bullish "Flag" pattern on the daily charts. Rounding bottom formation can be observed on the daily chart, which is having bullish implication for the medium term.

Downward sloping trend line breakout was seen on the weekly charts. Price breakout is accompanied by jump in volumes. The stock is on the verge of registering new all-time high above Rs 399. Traders and investors are expected to hold stock with Rs 351 stop-loss.

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Schaeffler India

The stock has been rising for last three consecutive sessions. Primary trend of the stock is bullish. Volumes have gone up significantly due to very good result announcement.

Due to sharp rally seen recently, it could show running correction. The stock has registered new all-time high and traders and investors can adopt buy on dips strategy. Support is seen at Rs 2,062, which can be utilised to add the stock in portfolio.

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Balkrishna Industries

The stock has broken out from last 7 weeks' price consolidation. Breakout was seen with rising volumes. It has surpassed the crucial resistance of its 200 days EMA. Indicators and oscillators like RSI (relative strength index), DMI (directional movement index) and MACD (moving average convergence divergence) have been showing strength in the current upmove.

The stock has started forming higher tops and higher bottoms on the weekly chart. Support for the stock is seen at Rs 2,016 and resistance is seen at Rs 2,422. Tyre stocks have started outperforming and the momentum is expected to rise on the upside.

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Jai Corp

The stock closed with 19 percent gains in yesterday's session with significant jump in volumes. Stock has reached the momentum phase and could continue to add gains in the days to come. The stock has also broken out from the downward sloping trend line on the weekly charts.

Bullish “Flag” pattern breakout was seen on the weekly charts. Resistances for the stock are seen at Rs 171 and Rs 213, while support is seen at Rs 136. Traders and investors can continue to hold on the stock with trailing stop-loss.

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Disclaimer: The views and investment tips expressed by investment 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.



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