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Trade Spotlight: What should investors do with Piramal, IOB & Central Bank?  

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

June 23, 2021 / 07:40 AM IST
 
 
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S&P BSE Sensex failed to hold on to the momentum after hitting a record high on Tuesday and closed with marginal gains. Nifty50 also fell more than 100 points from its intraday high of nearly 15,900 levels.

Among sectors, buying was seen in capital goods, industrials, auto, and power indices while profit-taking was visible in realty, banks, energy, and FMCG stocks

Stocks that were in focus include Piramal Enterprises which rallied over 5 percent, Indian Overseas Bank that rose 5 percent as well, and Central Bank of India that closed with gains of over 3 percent. All the stocks hit a fresh 52-week high on Tuesday.

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:

Piramal Enterprises: Hold

Close

This counter appears to have resumed its uptrend, after a brief correction, from the lows of Rs 2118 levels. Moreover, on the weekly charts, it seems to have registered a breakout from its 53-week ascending channel which has opened a much bigger target close to Rs 3000 levels.

However, this counter needs to sustain above Rs 2390 to retain positive bias going forward. Therefore, positional traders are advised to hold this counter with a stop below Rs 2340 on a closing basis and look for an initial target of Rs 2700. Fresh buying is advisable on correction towards Rs 2250.

IOB: Hold

The way this counter is rallying on the back of massive volumes in the last two sessions suggest that it has embarked on a fresh leg of upswing.

Moreover, on the weekly charts, it registered a breakout from its 66-week ascending channel which opened up a target of Rs 37.

Hence, existing investors can continue to hold and should consider adding on dips into the zone of Rs 23- 21 and look for a target of Rs 37. Stop suggested for this position is a close below Rs 19.

Central Bank of India: Hold

This counter appears to be in a multi-week consolidation zone between Rs 25-10. It is in need of a strong breakout above the said zone.

It has witnessed strong volumes in the last two trading sessions from the lows of Rs 19. Hence, an upside breakout can be expected. On such a breakout a bigger target of Rs 40 can be projected based on the consolidation range.

Hence, traders are advised to hold and look for a target of Rs 39 by placing a stop below Rs 19.  Even fresh buying can be considered either on dip between Rs 23-21 levels or on a close above Rs 28 levels.

Disclaimer: The views and investment tips expressed by 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.
Kshitij Anand is the Editor Markets at Moneycontrol.

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