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Trade Spotlight: What should investors do with United Spirits, Bajaj Finserv and Mphasis?

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.

September 24, 2021 / 07:51 AM IST
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Bulls partied hard. The market hit a fresh record highs with the Nifty50 closing above 17,800 mark for the first time and the BSE Sensex surged more than 950 points to move closer to 60,000 mark on September 23, rising 1.6 percent each. Positive global cues and the buying demand across sectors lifted sentiment.

The broader markets also participated in the rally as the Nifty Midcap 100 index was up 1.5 percent and Smallcap 100 index rose 0.78 percent.

Stocks that were in focus included beverage company United Spirits which hit a record high of Rs 843.50, before closing with 7.19 percent gains at Rs 829.15 and diversified NBFC Bajaj Finserv share price decisively crossed Rs 18,000 mark and touched a new high of Rs 18,750 before closing with 5.05 percent gains at 18,503.85. IT services company Mphasis also hit another record high of Rs 3,394 and ended at record closing high of Rs 3,338.60, up 2.69 percent.

Here's what Shrikant Chouhan, Head - Equity Research (Retail) at Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:

United Spirits

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After a robust range breakout formation, on September 23 the stock opened with a strong note and registered a fresh all-time high of Rs 843.50. In this month so far, it rallied over 23 percent.

Technically, on daily and weekly charts, the stock has formed breakout continuation formation which is broadly positive for the United Spirits.

For the trend following traders, Rs 800 would be the key support level. Above the same breakout, continuation formation will continue up to Rs 880-925. However, trading below Rs 800 could trigger short term correction up to Rs 750-710.

Bajaj Finserv

On Thursday, the stock opened with a positive note and successfully clear the intraday resistance of Rs 18,000. The strong price volume activity post intraday breakout indicates further uptrend from current levels.

In addition, on daily and intraday charts, the stock has formed promising higher high and higher bottom formation. And on daily and weekly charts, it has formed strong bullish candle which clearly support the short term uptrend.

For the positional traders, Rs 18,000 and Rs 17,700 would be the key support zone. As long as it's trading above the same uptrend formation is likely to continue up to Rs 19,000-19,650. Below 17,700 uptrend would be vulnerable.

Mphasis

On September 23, the stock made yet another all-time high of Rs 3,394. In this month so far, it rallied over 22 percent, the important point is stock not only surpassed its previous 52-week high of Rs 3,270 but comfortably managed sustained above the same.

On daily and weekly charts stock has formed breakout continuation pattern which is grossly positive for the Mphasis. However, on short term time frame, momentum indicators indicate stock is in to the overbought zone and high chances of quick short term price correction is not ruled out if stock trading below Rs 3,180.

For the next few trading sessions Rs 3,180 should be the trend decider level for the bulls, sustain above the same we can expect continuation of uptrend up to Rs 3,500.

Further uptrend may also continue which could lift the stock to Rs 3,750. On the flip side, dismissal of Rs 3,180 could possibly trigger quick short term correction up to Rs 3,000.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Sep 24, 2021 07:50 am

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