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Last Updated : Jul 16, 2020 08:13 AM IST | Source: Moneycontrol.com

Trade Spotlight: What should investors do with RIL, Wipro and Bharti Airtel?

Reliance Industries, Infosys, Bharti Airtel, Wipro, and NIIT Technologies were some of the stocks that were in focus on Wednesday.

 
 
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Indian market witnessed profit-taking at higher levels on July 16. Nifty50 failed to hold on to 10,800 levels while the S&P BSE Sensex fell more than 700 points from its highs.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 18 points to 36,051 while the Nifty50 closed with gains of 10 points to 10,618.

Sectorally, selling pressure was seen in telecom, energy, oil & gas, realty, and finance stocks while buying was visible in IT, FMCG, and Healthcare stocks.

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Reliance Industries, Infosys, Bharti Airtel, Wipro, and NIIT Technologies were some of the stocks that were in focus.

Here is an expert's technical views on what investors who missed the price action should do:

Expert: Ashish Chaturmohta Head of Technicals and Derivatives, Sanctum Wealth Management

Reliance Industries: Likely to consolidate| Support seen at Rs 1760

The stock has been in very strong uptrend forming a higher top and higher bottom since its March low of 864. On Wednesday, it touched an all-time high of 1978 and saw profit booking.

Thus, in the near-term, the stock may see some correction towards 1760 levels, and consolidate between 1750-1950 levels.

On the upside, 1945-1978 zone needs to be crossed and sustained for the uptrend to continue towards 2125 and then towards 2200 levels. However, below 1700, a deeper correction can be seen in the stock.

Infosys: The trend remains strong| Watch out for Rs 780 on the downside 

The stock has been in an uptrend forming a higher top and higher bottom since March low of 509. This week, the price has crossed the long-term falling resistance trend line connecting highs of 847 and 812.

The stock on Wednesday hit a new all-time high of 848. Thus, suggesting a change in long term trend correction mode to an uptrend.

MACD on the weekly chart has moved above the equilibrium level of zero indicating change in the ongoing trend. Hence, now crossing and sustaining above 848 levels, the stock can continue its uptrend towards the next resistance level of 950.

On the downside, 790-780 zone which was the recent breakout level will act as support as for the stock. However, a break below 780 levels, profit booking can be seen in the stock.

Bharti Airtel: Next resistance seen at Rs 690

The stock has seen a multi-year consolidation between 220 and 545 odd levels. It has formed a base and has also seen a breakout on the upside.

The up move from the lows and breakout has been on high volumes indicating buying participation in the stock.

For the last couple of months, the stock has been consolidating gains above the breakout levels at an all-time high level.

Thus, as long as the stock holds the support level of the recent consolidation low 530, the stock is likely to see a breakout on the upside and the next resistance level is seen at 690-700. However, below 530 levels, correction can be expected in the stock.

Wipro: Uptrend to continue towards Rs 302 levels

Since its all-time high of 302 in June last year, the stock was in a downtrend to touch the low of 159. The rally from lows was facing resistance at 230 odd levels for the last few weeks.

On Wednesday, the stock witnessed a gap-up opening and continue to trend higher to form a long body bullish candle with higher volumes. Thus, indicating buying participation in the stock.

Now, the breakout has crossed the falling resistance trend line of the decline connecting the highs of 302 and 258.

Also, the price closed above the previous congestion zone of 260 and 232. Thus, sustaining above 260, the uptrends can continue towards 302 levels. On the downside, the immediate support is seen at 249 and then towards 235 levels.

NIIT Technologies: Rs 1,550 crucial support| Next target seen at Rs 1,900

The stock had seen a decline from the highs of 2059 to a low of 734. The rally from the low of 734 had been facing resistance at 1553 where 61.8% Fibonacci retracement level of the decline 2059-734 is seen.

The stock has formed a short-term rounding bottom between 1550 and 1300 levels. Thus, holding above the breakout level of 1,550, the stock can rally towards 1900 levels on the upside.

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.
First Published on Jul 16, 2020 08:13 am
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