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Trade Spotlight | What should you do with Adani Green Energy, Indo Amines, Campus Activeware on Monday?

Indo Amines was the second stock we have considered for trade spotlight, which surged nearly 15 percent to Rs 137.6, the highest ever closing level. The stock has seen a strong gap up opening and formed robust bullish candlestick pattern with strong volumes on the daily charts. In fact, the opening price itself on Friday was even above previous swing highs.

August 22, 2022 / 06:03 AM IST
 
 
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Bears have finally taken the charge over Dalal Street and pulled the indices down by more than 1 percent on August 19, after an uptrend for eight consecutive sessions. The rally in the US dollar index weighed down the sentiment.

All sectoral indices, barring IT, closed in the red with the Nifty Bank, Auto, Financial Services, Metal, Pharma, FMCG and Realty indices declining 1-2 percent.

The BSE Sensex closed below the psychological 60,000 mark, down 652 points to 59,646, and the Nifty50 fell nearly 200 points to 17,758, while the Nifty Midcap and Smallcap indices also traded in line with benchmarks, falling more than 1 percent each.

The India VIX, which measures the expected volatility in the market, increased by 5.4 percent to 18.29 levels, making the trend favourable for bears.

Stocks that were in action and outperformed broader markets included Adani Green Energy which rallied 5 percent to Rs 2,411.35 and formed a bullish candlestick pattern on the daily charts with above-average volumes. In addition, the stock has broken its long downward sloping resistance trend line adjoining May 6 and August 2 on last Wednesday followed by back-to-back two strong bullish candle formations, while also it has respected upward sloping support trend line adjoining June 17 and August 5.

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Indo Amines was the second stock we have considered for trade spotlight, which surged nearly 15 percent to Rs 137.6, the highest ever closing level. The stock has seen a strong gap up opening and formed robust bullish candlestick pattern with strong volumes on the daily charts. In fact, the opening price itself on Friday was above the previous swing highs.

Campus Activewear was also in focus, rising nearly 7 percent to end at a record closing high of Rs 491, continuing the uptrend for the third straight session. The stock has seen the formation of large bullish candlestick pattern for yet another session with above-average volumes. In fact, it has given a breakout of long upward sloping resistance trend line adjoining May 9 (the debut day), and July 29, while it has also respected a long upward sloping support trend line adjoining from June 20 and July 22.

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

Adani Green Energy

In the month of June, the stock bottomed out from its 200-day SMA (simple moving average) support of Rs 1,715 which remains a crucial support. The stock entered an up trend forming a series of higher tops and bottoms indicating bullish sentiments.

With Friday's close, the stock has decisively broken out its past four months "multiple resistance" zone breakout at Rs 2,395 levels. This breakout is accompanied with huge volumes indicating increased participation.

The stock is well placed above its 20, 50, 100 and 200 days SMA which reconfirms bullish sentiments. The daily and weekly strength indicator RSI (relative strength index) is in bullish mode indicating rising and sustained strength on a short to medium term time frame.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,700-2,900, with downside support zone of Rs 2,300-2,200 levels.

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Campus Activewear

On the daily and weekly time frame, the stock is in strong uptrend forming a series of higher tops and bottoms indicating sustained uptrend. The stock has observed a short term breakout around Rs 460 levels on a closing basis along with huge volumes. This indicates increased participation in the rally.

The daily "band Bollinger" buy signals represents increased momentum. The daily strength indicator RSI is in bullish mode indicating rising and sustained strength on a short to medium term time frame.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 525-560 with downside support zone of Rs 455-450 levels.

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Indo Amines

With Friday's strong gains, the stock has decisively broken out its five months "multiple resistance" zone of Rs 120-122 levels on a weekly closing basis. This breakout is accompanied with huge volumes indicating increased participation.

On the daily and weekly time frame, the stock is in strong uptrend forming a series of higher tops and bottoms.

The daily and weekly strength indicator RSI is in bullish mode indicating rising and sustained strength on a short to medium term time frame.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 525-560 with downside support zone of Rs 455-450 levels.

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Disclaimer: The views and investment tips expressed by investment 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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