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Trade Spotlight | What should you do with Astral, Ceat, Jubilant Industries and PI Industries?

Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today.

December 29, 2021 / 07:41 AM IST
Representative Image

Representative Image

Positive global cues and buying across sectors helped the benchmark indices close higher for the second consecutive session on December 28. The BSE Sensex rallied more than 470 points to close near 57,900, while the Nifty50 gained nearly 150 points to finish Tuesday's trade above 17,200 mark.

The broader markets significantly outperformed benchmark indices as the Nifty Midcap 100 index rallied 1.18 percent and Smallcap 100 index jumped 1.55 percent.

Stocks that were in focus include Astral and PI Industries, which were the top and third biggest gainers in the futures & options segment, rising 4.7 percent to Rs 2,235.90, and 3.8 percent to Rs 3,001.50.

Other stocks that were in action include Jubilant Industries which was locked in 20 percent upper circuit at Rs 643.25, and Ceat which surged 11.67 percent to Rs 1,214.20.

Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:

Close

Astral

This counter seems to have slipped into corrective and consolidation mode, after registering life time highs of Rs 2,430 in last October, which depicted a descending triangular kind of structure as shown in the chart.

However, relatively higher volumes of last trading session may be hinting at an impending breakout in near future. In that scenario initial targets can be the test of life time highs present around Rs 2,430 and beyond that a higher target of Rs 2,610 can't be ruled out.

While fresh buying is recommended only on a close above Rs 2,260 levels. Existing investors can continue to hold with a stop-loss below Rs 2,140 levels and look for bigger targets of Rs 2,600 as long term trend looks robust.

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Ceat

This counter seems to have posted a durable bottom at recent low of Rs 1,060 as it erased last leg of losses from the high of Rs 1,188 to Rs 1,060 in just one session on the back of relatively much higher volumes.

Moreover, this counter appears to be in a multi-month corrective phase from the February 2021 highs of Rs 1,763 and with last session's spike in price can be hinting at end of corrective downswing.

Hence, positional traders with a multi-month time horizon should adopt two-pronged strategy of buying now and adding further on dips into the zone of Rs 1,170 – 1,150 levels and look for a target of Rs 1,400 levels but stop-loss remains below Rs 1,060.

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Jubilant Industries

New highs is always an indication of robust uptrend and this counter seems to have registered a consolidation breakout, only to enter uncharted territory once again, after remaining in a sideways range for a period of 20 weeks.

However, as this counter moved from the intraday low of Rs 536 to a high of Rs 643 in last session, immediate upsides may remain capped.

Hence, positional traders are advised to wait for a dip to create fresh longs in the zone of Rs 600 - 550 levels in two instalments as stop-loss remains slightly far away below Rs 536 levels and look for a target of Rs 740.

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PI Industries

This counter seems to be in a multi-week consolidation and still in need of a breakout above Rs 3,100 levels for a sustainable up move. Hence, despite decent price appreciation on the back of relatively higher volumes, there may not be a fresh buying opportunity unless it registers a breakout above Rs 3,100 levels on closing basis.

On such a breakout, a sustainable up move can be expected with initial targets of Rs 3,400 levels. For time being if someone is long they can hold with a stop-loss below Rs 2,900 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.
first published: Dec 29, 2021 07:40 am
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