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Trade Spotlight: What should investors do with IDFC, Jubilant FoodWorks and Jindal Stainless?

IDFC rose nearly 12% to hit a 52-week high, Jubilant FoodWorks gained over 11%, and Jindal Stainless saw gains of over 18%. Read on to know what Shrikant Chouhan of Kotak Securities suggests investors should do with these stocks

July 23, 2021 / 08:27 AM IST
 
 
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The benchmark indices rallied more than 1 percent each on July 22. The Nifty50 closed above 15,800, while the S&P BSE Sensex rose by more than 600 points.

Sectorally, buying interest was seen in metals, telecom, capital goods, and power which rose more than 2 percent each, while the FMCG index saw some profit-taking.

Stocks that were in focus include IDFC, which rose nearly 12 percent to hit a 52-week high, Jubilant FoodWorks (gained over 11 percent), and Jindal Stainless saw gains of over 18 percent. All three stocks hit fresh 52-week high on July 22.

Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, recommends investors should do with these stocks when the market resumes trading on July 23:

IDFC:

Close

On July 22, the stock opened with a huge gap up, but once again it failed to close above Rs 60 breakout level. On the intraday charts, the stock is witnessing a non-directional activity perhaps.

Traders are waiting for the breakout confirmation. For the bulls, Rs 60-61 would be an important breakout level.

If the stock manages to close above the same, we can expect a quick uptrend rally towards Rs 65. On the flip side, if the stock trades below Rs 57.5, the fall could extend towards Rs 55.50

Jubilant FoodWorks:

The stock rallied over 11 percent on July 22. It opened with a gap up and quickly surpassed Rs 3,300 resistance mark with strong volume activity.

Post breakout, it was trading above the resistance level throughout the day which is broadly positive for the stock.

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 future if the stock succeeds to trade above Rs 3,300.

For the swing traders, Rs 3,300 should be the sacrosanct level, and if the stock trades above the same then we can expect an uptrend continuation wave up to Rs 3,550-3,650.

Jindal Stainless:

The stock hit a 20 percent upper circuit on July 22. It has been in an uptrend so far this month. It has rallied from Rs 105 to Rs 146, which is nearly 40 percent.

The rally was price dominating along with incremental volume activity. On the daily and weekly charts, the stock has formed a robust Breakout continuation pattern which suggests uptrend momentum likely to persist in the near future.

However, on an intraday time frame, the momentum indicators indicate stock is in an overbought zone and the uptrend would be vulnerable if the price closed below Rs 135-mark.

For the swing traders Rs 135 should be the trend decider level. If the stock trades above the same then we can expect a further uptrend up to Rs 165-175. However, a close below Rs 135, swing traders may prefer to exit out from trading long positions.

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.
first published: Jul 23, 2021 08:27 am

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