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Trade Spotlight | What should investors do with Persistent Systems, Graphite India, and Responsive Industries now?

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.

December 31, 2021 / 07:25 AM IST
 
 
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It was another volatile session for the market, as the Nifty50 closed flat with a negative bias on December 30, the expiry day for December futures & options contracts.

The BSE Sensex fell tad below 57,800 levels, down 12 points, while the Nifty50 closed slightly above 17,200 mark with 10 points loss.

The broader markets had a mixed trend. The Nifty Midcap 100 index was down 0.37 percent and the Nifty Smallcap 100 index gained 0.24 percent.

Stocks that were in focus include Persistent Systems, which was the second biggest gainer in the futures & options segment, rising 3.49 percent to close at Rs 4,810.60 on Thursday.

Graphite India and Responsive Industries were also in focus with double-digit gains. Graphite rallied 19.08 percent to Rs 523.55, and Responsive Industries jumped 18.59 percent to Rs 150.85.

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Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

Persistent Systems

Persistent Systems has consistently forming higher high and higher low formation. The stock is in to the strong uptrend, in this month alone it rallied nearly 20 percent.

The texture of the chart suggests, strong uptrend formation is likely to continue in the near future.

For the trend following traders, now Rs 4,600 or 9-day SMA (simple moving average) would be the sacrosanct support level. Above the same, the breakout continuation formation will continue till Rs 4,900-5,100. On the flip side, below Rs 4,600 uptrend would be vulnerable.

Graphite India

After a medium term price correction, finally the stock took the support near Rs 400. Post correction, it has formed double bottom formation and reversed sharply. On Thursday, despite tepid market conditions the stock rallied 20 percent.

A strong price volume rally clearly supports further uptrend. For the swing traders, Rs 490 and Rs 485 would be the trend decider level.

Trading above the same levels, the positive momentum will continue up to Rs 550-585. However, if it closes below Rs 485, traders may prefer to exit from trading long positions.

Responsive Industries

After a medium term price correction, the stock has formed higher bottom formation near Rs 100. Post formation, the stock reversed sharply and successfully clear the short term resistance of Rs 125.

After a long time Responsive Industries is trading above 200-day SMA which is broadly positive. On Thursday, it rallied 20 percent, strong price volume rally indicating further uptrend from current levels.

For the positional traders, now 200-day SMA or Rs 135 could be the key level to watch out. If the stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 160-170.

On the flip side, if the stock closes below Rs 135, it may trigger further weakness up to Rs 114-110 support level.

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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