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Trade Spotlight: What should investors do with IRCTC, Oberoi Realty, L&T Infotech

Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:

September 08, 2021 / 08:17 AM IST
 
 
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Indian benchmark indices broke their three-day winning streak to end flat amid volatility on September 7 after hitting record highs levels intraday.

The Sensex and the Nifty 50 touched their record highs of 58,553.07 and 17,436.50 during the session but squandered the gains to close lower. At close, the Sensex was down 17.43 points, or 0.03 percent, at 58,279.48 and the Nifty was down 15.70 points, or 0.09 percent, at 17,362.10.

Sectorally, selling pressure was seen in IT, metal, pharma, PSU banks and realty stocks, whereas buying was seen in select FMCG stocks, HDFC twins, Bharti Airtel, ITC and Reliance Industries.

Stocks that were in focus included IRCTC which rallied 9.8 percent intraday to hit a record high of Rs 3,305, Oberoi Realty and L&T Infotech.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Close

IRCTC

This counter seems to have registered a fresh breakout from its narrow ascending channel which is in progress from the lows of Rs 1550 for the last 20 weeks. Though this breakout in uncharted territories is signaling a strong upward momentum, target appears to be modest around Rs 3,400 levels.

Moreover, vertical upmove from the lows of Rs 2,743 in just 4 trading sessions may attract profit booking any time. Hence, short term traders will be better off by taking profits in the next session as risk-reward ratios from current levels are not looking that favourable.

However, fresh buying can be considered, on correction, around Rs 3,050 levels with a stop below Rs 2,950 levels on closing basis.

Oberoi Realty

This counter registered a breakout on September 6, after a brief struggle at the upper boundary of its 53-day old ascending channel on relatively much higher volumes. Interestingly, at yesterday's low of Rs 785, it tested back the breakout point and managed to sustain above the same.

Therefore, in the near term it needs to sustain above Rs 785 levels to retain bullish bias as a close below Rs 785 may extend the weakness towards RS 750 levels.

Hence, in next one or two trading sessions if it manages to get past Rs 825 levels then fresh buying should be initiated, for a channel breakout target of Rs 916, as such price behaviour hints at resumption of upmove.

Even on correction Rs 760 can be a good entry point with a stop loss below Rs 750 on closing basis.

L&T Infotech

Albeit this counter is trading in uncharted territories, it seems to be in need of a strong breakout as it is registering indecisive formations at higher levels.

Hence, if it fails to sustain above Rs 5,370 levels in next couple of trading sessions then weakness shall initially extend towards Rs 5,250 – 5,200 levels.

Contrary to this a strong close above Rs 5,550 can result in a fresh breakout with a target placed around Rs 5,800 levels. Therefore, traders are advised to hold with a stop loss below Rs 5,370 and consider exiting unless this counter sustains above Rs 5,550 levels in next two sessions.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Sep 8, 2021 08:17 am

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