Moneycontrol PRO
Upcoming Event:Experts and leaders discuss how modern digital tools are transforming the media industry. Register now

Trade Spotlight | What should investors do with HFCL, ICICI Prudential, Exide, Adani Green Energy, Raymond?

Trade Spotlight | Here's what Malay Thakkar of GEPL Capital, suggests investors possessing these stocks when the market resumes trading today.

January 18, 2022 / 07:39 AM IST
Trade Spotlight

Trade Spotlight

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

The market was highly volatile and finally settled the trade at a three-month high on January 17. The BSE Sensex closed above 61,300 levels, nearly 90 points higher, while the Nifty50 ended at 18,308, the highest level since October 19, 2021, up more than 50 points.

The broader markets also closed higher with the Nifty Midcap 100 index rising 0.16 percent and Smallcap 100 index climbing six-tenth of a percent.

Stocks that were in focus include Exide Industries and ICICI Prudential Life Insurance Company which were the third and fourth biggest gainers in the futures & options segment, rising 4.95 percent to Rs 182.50 and soaring 4.15 percent to Rs 615.65 respectively.

Among others, Adani Green Energy hit a fresh record high of Rs 1,854, before closing with gains of 8.09 percent at Rs 1,835.30, while Raymond also touched a fresh 52-week high of Rs 793.60, before settling trade at Rs 782.15 with 15 percent gains.

HFCL was also in action, rising 4.90 percent to end at record closing high of Rs 96.35.

Close

Here's what Malay Thakkar of GEPL Capital, suggests investors possessing these stocks when the market resumes trading today:

HFCL

On the weekly timeframe, HFCL has broken out of a 6-month long Ascending Triangle formation with strong volumes. The breakout indicates a continuation of the existing mid-term uptrend.

The relative strength index (RSI) indicator on weekly has witnessed a range shift and is sustaining above 50 mark since September 2020.

Investors can hold and accumulate this stock with upside targets of Rs 115 followed by Rs 130. The downside support lies at Rs 85.

Image141712022

ICICI Prudential Life Insurance

After the recent corrective move. ICICI Prudential took support at Rs 540, at the breakout level of May 2021 which confluences with the 61.8 percent Fibonacci retracement (Rs 418-726).

On the daily timeframe, on January 17, 2022 the stock has recaptured and moved above its 200-Day simple moving average (SMA) (Rs 602).

RSI on all timeframes (daily, weekly, monthly) is above 50 and showing strength.

Traders and investors can continue holding the stock and expect upward move towards Rs 680 followed by Swing high of Rs 725. Downside support lies at Rs 590-600 for this stock.

Image151712022

Exide Industries

Exide industries is moving in a sideways trend since last 1 year (Rs 160-210 range). Today on Daily timeframe the stock has moved above the 200 Day SMA (Rs 178) with good volumes.

RSI plotted on Daily timeframe has moved above 70 levels indicating positive momentum in short term. In shorter term, the stock has potential to move towards Rs 200-210 levels with support at Rs 177.

Investors can use this up move towards Rs 200 to exit from the stock.

Image161712022

Adani Green Energy

Adani Green Energy for the past 2 weeks has been forming a higher high higher low pattern after breaking out of the Rs 1,460 mark. This up move has been backed by above average volume build-up, indicating participation in the up move.

The stock has been sustaining above the 20-week SMA since September 2021, indicating that the medium term trend of the stock remains bullish.

On the indicator front the RSI plotted on the weekly time frame can be seen placed above the 50 mark and is currently moving higher, indicating increasing bullish momentum in the prices.

Investors holding this stock can continues to hold on as we expect the prices to head towards Rs 2,153 and eventually towards Rs 2,498. We also recommend a strict stop-loss of Rs 1,700 on daily closing basis.

Image171712022

Raymond

Raymond on the weekly chart can be seen forming a higher high higher low pattern. On January 17, 2022 the prices formed a strong bullish candle and tested a fresh 52 week high. This up move was backed by good volume build-up, indicating participation in the up move.

On the indicator front the RSI plotted on the weekly chart is placed above the 50 mark and is moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

Investors holding long positions in this stock should continue to hold on to their positions, we expect the prices to move higher and test Rs 868 level immediately. If the prices manage to sustain above the Rs 868 mark we might see an up move towards Rs 1,150 mark.

We also recommend a strict stop-loss of Rs 710 on daily closing basis.

Image181712022

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.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Sunil Shankar Matkar
Sections
ISO 27001 - BSI Assurance Mark