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Trade Spotlight | What should investors do with InterGlobe Aviation, Indiabulls Housing, Ashok Leyland, Indian Hotels on Thursday?

"What a fantastic setup we are having in Ashok Leyland -- precise Bullish Deep Crab pattern on daily chart with Classic Doji near potential reversal zone of Rs 95-100," says Jigar S Patel of Anand Rathi Shares & Stock Brokers.

March 10, 2022 / 07:38 AM IST
 
 
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It was yet another strong day for the bulls that pushed not only equity benchmarks, but also broader markets and Bank Nifty higher by 2 percent each on March 9. Positive global cues and easing commodity prices lifted market sentiment.

Buying continued across sectors barring metals for the second consecutive session.

The BSE Sensex rallied more than 1,200 points to 54,647 while the Nifty50 jumped more than 330 points to 16,345 and saw strong bullish candle on the daily charts.

Stocks that were in action include Indiabulls Housing Finance which was the biggest gainer in the derivatives segment, rising 11 percent to Rs 150.30, and Ashok Leyland which was the third largest gainer in the futures and options space, climbing 7.5 percent to Rs 106.75.

InterGlobe Aviation was also in a strong mood with stock price moving up 6.9 percent to Rs 1,709 and Indian Hotels jumped 6.8 percent to Rs 207.3.

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Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:

InterGlobe Aviation

InterGlobe Aviation has corrected almost 38 percent from its top of Rs 2,380 made on November 2021 and it is placed well below its 200 DMA (day moving average) i.e. Rs 1,922.

In current scenario, the stock has formed bullish AB=CD Pattern with potential reversal zone of Rs 1,600-1,650. On March 8, the counter has reversed nicely from PRZ (potential reversal zone). On indicator front 14 period daily RSI (relative strength index) is displaying impulsive behaviour in oversold zone which is a sign of early reversal.

Looks like counter is ready for upmove. Therefore, from investor perspective one should add at current levels in small quantity and wait for some dip till Rs 1,600. Upside is expected till Rs 2,050 and historical support is seen at Rs 1,550.

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Indiabulls Housing Finance

Indiabulls Housing Finance has been beaten massively in the recent past, almost 50 percent is wiped out.

On March 8, it formed Doji followed by big green reversal candle on March 9 confirming that the stock is being bottom-out. Abovementioned technical moves are being confirmed by good volume spike for the last couple of days.

Last but not the least, the counter is currently trading near 1.13 ratio (fake breakdown ratio) of harmonics of its previous top of Rs 315 made on June 2021.

One can add at current levels in a staggered manner with upside expected till Rs 210 and solid support is seen at Rs 125.

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Ashok Leyland

What a fantastic setup we are having in Ashok Leyland, precise Bullish Deep Crab pattern on daily chart with Classic Doji near potential reversal zone of Rs 95-100.

On hourly time frame, we have positive divergence near Rs 100 levels, also positive volume is gaining momentum at said levels.

From investor perspective, this are lucrative levels from where one can add in small quantity and add another tranche at Rs 100 levels. Upside is seen till Rs 140-145 levels with Rs 90 as good support.

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Indian Hotels

At the current juncture, Indian Hotels is at the wait and watch stage -- the stock has already rallied 15 percent from its low of Rs 180.

On indicator front, MACD (moving average convergence divergence) is displaying positive crossover. So from a trader perspective one should wait till Rs 190-195 levels and then buy and look for upside till Rs 235 with credible support seen at Rs 180.

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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.
Sunil Shankar Matkar
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