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Trade Spotlight: What should investors do with RIL, V-Mart and Bharat Electronics?

Reliance Industries fell over 2 percent, Bharat Electronics rose over 1 percent to hit a 52-week high and V-Mart gave up gains after hitting a fresh 52-week high to close in the red on June 24.

June 25, 2021 / 08:09 AM IST
 
 
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The Indian market closed higher on June 24, with the Nifty gaining more than 100 points on the June F&O expiry day. The Sensex also rallied nearly 400 points.

At the close, the Sensex was 393 points, or 0.75 percent, up at 52,699 while the Nifty was 104 points, or 0.66 percent, higher at 15,790.45.

On the sectoral front, buying was seen in IT, banks, metals, and capital goods, while selling pressure was visible in energy, oil & gas, power and utilities space.

Stocks that were in focus included Reliance Industries, which slipped more than 2 percent on the AGM meeting day, Bharat Electronics rose over 1 percent to hit a 52-week high, and V-Mart gave up gains after hitting fresh 52-week high to close in the red.

Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

Close

RIL: Momentum likely to continue

In the June F&O series, the stock rallied over 10 percent. The uptrend move was strong and price dominating but once again the stock took resistance near Rs 2,240 and reversed sharply.

However, the border texture of Reliance Industries is positive and the momentum is likely to continue in the medium term.

After a short-term correction, the stock is trading near the important retracement level. In the near future, Rs 2,120 and 2,080 should be the key support levels to watch out for.

Uptrend continuation texture is likely to continue up to Rs 2,250-2,300, if the stock succeeds to trade above Rs 2,080. On the flip side, the uptrend would be vulnerable below Rs 2,080.

V-Mart Retail: Hold

For the last couple of weeks, the stock is trading in the Rs ,2750-2,950 range. On June 24, after a muted opening, the stock witnessed a sharp surge in the price action with incremental volume activity, but due to lack of follow-through buying, it reversed sharply.

The short-term texture of V-Mart Retail Ltd suggests that non-directional activity is likely to continue in the near future.

We are of the view that traders are waiting for either side to break out. For the bulls, Rs 3,000 would be the important breakout level to watch.

If the stock manages to close above the same, we can expect a quick uptrend rally towards Rs 3,250-3,350. On the flip side, trading below Rs 2,750 may increase further weakness up to Rs 2,550.

BEL: Further upside possible

Post Rs 160 breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 140 to Rs 170 within a short period of time. The rally was price dominating and the volume activity has been modest.

On the daily and weekly charts, the stock has formed a strong price-volume breakout structure, which clearly suggests further uptrend.

For the swing traders, Rs 162 should be the trend decider level. We can expect continuation of uptrend up to Rs 180-190 as long as it trades above Rs 162.

On the flip side, a close below 162 will push traders to exit long positions.

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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