Trade Spotlight: What should investors do with Prakash Pipes, GATI & Borosil Renewables?

Stocks that were in focus on Thursday include Prakash Pipes which rallied 19 percent, GATI (up over 3 percent) and Borosil Renewables which wiped out gains after hitting a 52-week high of Rs 323.25.

January 01, 2021 / 08:27 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Indian markets witnessed a profit-booking decline as both Sensex, and Nifty50 surged to fresh record highs on the December series expiry day on Thursday.

The S&P BSE Sensex which hit a record high of 47,896 closed with marginal gains of 5 points at 47,751 while the Nifty50 that surpassed the psychological level of 14000 hit a record high of 14024 but closed flat with a negative bias.

Sectorally, the action was seen in realty, consumer durables, consumer discretionary, and metal stocks while profit-booking was seen in telecom, FMCG, energy, and oil & gas space.

Stocks that were in focus on Thursday include Prakash Pipes which rallied 19 percent, GATI (up over 3 percent) and Borosil Renewables which wiped out gains after hitting a 52-week high of Rs 323.25.

We have collated views of experts on what investors should do when the market resumes trading on January 1:

Close

Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

Prakash Pipes: Bullish Outlook

The stock has rallied over 20 percent On December 31. It made a fresh all-time high of Rs 116.50 and after an extremely strong intraday session, the stock closed above 109 resistance mark, which is broadly positive.

The important thing is that the incremental volume activity post-breakout clearly indicates high chances of a further uptrend from current levels.

On the daily as well as on the weekly charts, the stock has formed a strong promising price volume breakout formation that indicates bulls are clearly dominating the price action.

For the breakout traders, levels of Rs 109 and Rs 104 would be the key levels to watch. The overall chart structure suggests that if the stock price sustains above the same (Rs 104-109) then the breakout continuation texture is likely to continue up to Rs 139-150.

Gati: Rs 90 would be the trend decider level for positional traders

The stock hit a fresh 52-weeks high of Rs 106.60 on Thursday. It has rallied from Rs 80 to 100 within a very short period of time. The rally was price dominating and was also supported with modest volume activity.

On the daily as well as on the weekly charts, the stock has formed Higher High and Higher Low series pattern that suggest uptrend momentum is likely to persist in the near future.

For the positional traders, 90 would be the trend decider level. Trading above the same then we can expect further uptrend up to 125. However, a close below 90, traders may prefer to exit out from trading long positions.

Borosil Renewables: Trade cautiously | Support seen at Rs 280

In this quarter the stock has rallied over 300 percent. Post price volume breakout, the stock surged rapidly. The sharp surge in the price action surprised most of the traders as well as investors.

The medium-term texture of the chart is positive and is likely to continue in the near term. However, in the short-term time frame, the stock is in an overbought zone and profit booking can not be ruled out if it trades below the Rs 279 level.

On the flip side, the uptrend rally likely continues up to Rs 325 and Rs 350 if the stock closes above Rs 279. The short-term structure indicates traders may prefer to place a cautious stance near the Rs 280 support level.

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.

stay updated

Get Daily News on your Browser
Sections