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Trade Spotlight | What should investors do with Strides Pharma, Intellect Design, ITC, IRCTC, Jubilant FoodWorks today?

ITC has strongly rebounded from its one-year multiple support zone, which remains a positive sign

March 07, 2022 / 09:17 AM IST
 
 
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The market fell for the fourth straight session on March 4 as Russian forces took control of a nuclear plant in Ukraine, the neighbouring country they have invaded and elevated oil prices that fanned inflation concerns.

The BSE Sensex fell 769 points, or 1.40 percent, to 54,334, while the Nifty50 plunged 252.60 points, or 1.53 percent, to 16,245, the lowest since August 6, 2021. The indices lost around 2.5 percent during the week.

The broader markets saw even a higher correction, with the Nifty Midcap 100 and Smallcap 100 indices falling 2 percent and 1.8 percent.

Selling was seen across sectors barring IT, pharma and the so-called defensives. Auto and metal indices were biggest losers, tumbling more than 3 percent each.

Stocks that were in action included Strides Pharma and Intellect Design Arena, which were the biggest gainers in the futures & options segment, rising 3.6 percent to Rs 319.6 and 3.5 percent to Rs 679.

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ITC was another big gainer among the Nifty50 stocks, up 2.78 percent at Rs 225.5.

IRCTC and Jubilant FoodWorks were among the top five losers in the derivative segment. IRCTC plunged 6.5 percent to Rs 747.2, and Jubilant FoodWorks lost 6.1 percent to Rs 2,628.

Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Strides Pharma Science

The stock is in a strong down trend across all the time frames, forming a series of lower tops and bottoms. However, in the last week, the stock re-tested its 10-year crucial support zone of Rs 305-290 and bounced sharply.

Huge above volumes average signals buying at crucial support zone. The weekly price action has formed a small bearish candle carrying a long lower shadow, indicating support at lower levels.

The positive divergence on the daily strength indicator relative strength index (RSI) signals accumulation as well as rising strength at lower levels.

Investors should buy, hold and accumulate this stock for a relief rally towards Rs 350-380, with downside support zone of Rs 300-290 levels.

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Intellect Design Arena

For more than a year, the stock has been consolidating near its major support zone of Rs 630-620. With the previous week's gain of 5 percent, the stock managed to hold this support zone on a weekly basis. The buying momentum near the support zone was accompanied with huge volumes, indicating increased participation.

RSI has turned bullish along with positive crossover indicator rising strength near the support zone.

Investors should buy, hold and accumulate this stock for a relief rally towards Rs 740-800, with the downside support zone of Rs 620-600.

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ITC

With the past couple of week's low around Rs 210-207, the stock has rebounded from its one-year multiple support zone, which remains a positive sign.

On the weekly time-frame, the stock is trending up in "up-sloping channel", indicating positive bias. The stock has recaptured its 20, 50 and 200-day simple moving average (SMA) and closed above it, indicating a positive bias. A huge volume spurt near the support zone signifies accumulation at lower levels.

Investors should buy, hold and accumulate this stock with an expected upside of 240-250, with downside support zone of Rs 210-205.

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IRCTC

The stock has witnessed a shift of trend to the downside. On the daily and weekly charts, the stock continues to form lower tops and bottoms, indicating weakness. The stock is well placed below its 20, 50 and 100-day SMA which supports bearish sentiments.

Huge volume at breakdown signals bearish sentiments. The daily weekly and monthly RSI continue to remain weak, indicating weakness.

Investors should use any bounce towards Rs 800-840 as an exit opportunity, with a downside crucial support zone of Rs 690-650 levels.

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Jubilant FoodWorks

The stock is in a sharp downtrend across all the timeframes, forming a series of lower tops and bottoms. The stock is well placed below its 20, 50, 100 and 200-day SMA which supports bearish sentiments.

The daily, weekly and monthly RSI continue to remain weak. Investors should use any bounce towards Rs 3,000-3,200 as an exit opportunity, with a downside crucial support zone of Rs 2,500-2,400.

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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.
Sunil Shankar Matkar
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