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Trade Spotlight | What should investors do with Ipca Labs, Tanla Platforms, RCF, Indiabulls Housing Finance on Wednesday?

Traders should trade with a positive bias and look to buy Ipca Labs in the range of Rs 1,060-1,050 for a potential target of Rs 1,130 in the short term. One should place a stop-loss below Rs 1,020 on the positions.

March 30, 2022 / 07:31 AM IST
 
 
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Indian equity benchmark indices rallied six-tenth of a percent on March 29 amid volatility, continuing uptrend for second consecutive session, backed by uptrend in global peers amid peace talks between officials of Ukraine and Russia.

The BSE Sensex rallied 350 points to 57,944, while the Nifty50 jumped over 100 points to 17,325. In the broader space, Nifty Midcap index gained four-tenth of a percent. Select banking & financials, pharma and IT stocks supported the rally.

Stocks that were in action include Ipca Labs, the biggest gainer in the futures & options segment, rising 6 percent to Rs 1,059 apiece. Indiabulls Housing Finance was the fifth largest gainer in derivatives segment, climbing 4.3 percent to Rs 160.10 per share.

Other stocks that were in focus include Tanla Platforms which spiked more than 9 percent to Rs 1,442, and Rashtriya Chemicals and Fertilisers which jumped 13 percent to Rs 91.70.

Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:

IPCA Laboratories

Post a price-wise correction, the stock has recently seen time-wise corrections as well as the prices have consolidated in a range in last couple of months.

The recent price action has resulted into formation of an 'Inverted Head and Shoulders' pattern and the stock have given a breakout above the same. The breakout is supported by higher than average volumes and the RSI (relative strength index) oscillator is hinting at a positive momentum.

Hence, traders should trade with a positive bias and look to buy the stock in the range of Rs 1,060-1,050 for a potential target of Rs 1,130 in the short term. One should place a stop-loss below Rs 1,020 on the positions.

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Tanla Platforms

After a swift upmove in one and a half year, the prices have seen some price correction in this calendar year so far. However, this seems to be a corrective phase and prices are attempting a pullback from its 200-DMA (day moving average) support.

The ‘RSI Smoothed’ oscillator is also hinting at a positive momentum from the support and hence, we could see a pullback move in the near term.

Traders can place stop-loss below Rs 1,300 on existing positions and expect a pullback towards Rs 1,600 in the near term.

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Rashtriya Chemicals and Fertilisers

Stocks from the fertilizer sector have witnessed buying interest recently and have outperformed the broader markets in the recent corrective phase.

RCF has given a breakout from a long consolidation which is also supported by high volumes. This indicates a positive trend for the stock and hence, traders and investors should look to accumulate the stock on any declines.

One can hold existing long positions if any and look to buy the stock on dips in the range of Rs 88-87 for a potential target of Rs 102 in the near term. The stop-loss for long positions should be placed below Rs 82.

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Indiabulls Housing Finance

This stock has underperformed in the broader markets and has corrected sharply in last few years. As of now, the trend continues to remain negative and the recent upmove from the low should be seen as just a pullback move.

Untill there's higher top higher bottom formation and good volumes in the stock, traders should avoid bottom fishing an look for better alternate opportunities from the same sector.

The immediate support is placed around Rs 152 and Rs 140 while resistance is seen around Rs 172-175.

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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