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Trade Spotlight | What should investors do with Pidilite Industries, Monte Carlo Fashions and Narayana Hrudayalaya?

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

November 12, 2021 / 09:23 AM IST
 
 
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The continued selling pressure across all sectors, barring metals, pulled the benchmark indices below crucial levels on November 11. The broader markets also corrected, with the Nifty Midcap 100 index declining 0.82 percent and Smallcap 100 index falling half a percent.

On November 11, the Nifty50 closed well below 18,000-mark, down 143.60 points at 17,873.60, while the BSE Sensex also settled below an important 60,000 levels, declining 433.13 points to 59,919.69.

However, stocks that were in focus include Pidilite Industries, which was the biggest gainer in the futures & options segment, rising 4.54 percent to close at Rs 2,474, and Narayana Hrudayalaya hit a fresh record high of Rs 623.15, before closing 4.43 percent higher at Rs 571.45.

Meanwhile, Monte Carlo Fashions was locked in upper circuit of 20 percent and closed at Rs 520.25.

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

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Pidilite Industries

The stock has rallied nearly 5 percent on November 11. On Thursday, the stock opened with gap up and quickly surpassed Rs 2,425 resistance mark with strong volume activity. Post breakout entire day it was trading above resistance level which is broadly positive for the Pidilite Industries.

On the short term time frame, the stock has maintained uptrend continuation formation and now comfortably trading above 50-day SMA (simple moving average. The texture of the pattern suggests breakout action will continue in the near future, if the stock succeeds to trade above Rs 2,400 or 50-day SMA level.

For the swing traders, Rs 2,400 would be the sacrosanct level, trading above the same we can expect uptrend continuation wave up to Rs 2,525-2,585.

Narayana Hrudayalaya

On November 11, the stock opened on a strong note and very quickly made a fresh all-time high of Rs 623.15. The medium term structure of the Narayana Hrudayalaya is robust, on the daily charts stock has formed Higher High and Higher Bottom series formation which clearly suggest uptrend pattern likely to continue in the near term.

For the positional traders, Rs 540 would be the key support level. If it manages to trade above the same then we can expect continuation of uptrend up to Rs 630-675 in the medium term.

Monte Carlo Fashions

The Stock hit a 20 percent upper circuit on November 11. It has rallied from Rs 400 to Rs 520 with in a very short period of time. That rally was price dominating and supported with modest volume activity.

On daily and weekly charts stock has formed breakout continuation formation which suggest uptrend momentum is likely to persist in the near future.

For the breakout traders, now Rs 495 would be the trend decider level. Trading above the same then we can expect further uptrend up to Rs 550-565. However, if it closes below Rs 495, traders may prefer to exit from trading long positions.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their 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

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