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Trade Spotlight | What should you do with Exide Industries, Tube Investments, Birla Cable on Tuesday?

Birla Cable was locked in 20 percent upper circuit at Rs 144, forming robust bullish candlestick pattern on the daily charts with above average volumes. It has seen a breakout of long downward sloping resistance trend line adjoining March 23, April 7, and August 2 this year.

September 06, 2022 / 06:12 AM IST
 
 
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The market staged a good performance in the start of the week and closed with seven-tenth of a percent gains on September 5 despite negative trend in global counterparts. Every sector participated in the run up.

The BSE Sensex rallied 443 points to 59,246, and the Nifty50 rose 126 points to 17,666, while the broader markets also gained strength with the Nifty Midcap 100 and Smallcap 100 indices rising 0.4 percent and 1.2 percent respectively on positive breadth.

About three shares advanced against one declining share on the NSE.

Stocks that were in action included Exide Industries which was the biggest gainer in the futures & options segment, rising 8 percent to Rs 172.40 and formed strong bullish candlestick pattern on the daily charts with robust volumes. Also there was a break out of long downward sloping resistance trend line adjoining September 3, 2021 and August 17, 2022.

Tube Investments of India also gained momentum, climbing 8.5 percent to end at record closing high of Rs 2,488 and formed big bullish candle on the daily charts with strong volumes.

Birla Cable was locked in 20 percent upper circuit at Rs 144, forming robust bullish candlestick pattern on the daily charts with above average volumes. It has seen a breakout of long downward sloping resistance trend line adjoining March 23, April 7, and August 2 this year.

Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:

Tube Investments of India

By looking at the daily timeframe chart we can spot Change in the polarity by the prices around the level of Rs 2,010, which shows the bullish undertone of the stock.

Prices post the uptrend from June 17, 2022 made a base in the form of Double bottom pattern, which in the latest session witnessed a breakout. This indicates the beginning of trend on the upside.

The prices on the daily timeframe have sustained above Upper Bollinger band indicating increase in the volatility for the upside move.

Relative strength index (RSI) plotted on the Daily as well as on weekly timeframe is above 50 mark reflects strong momentum in the price.

We recommend traders and investors to buy and accumulate this stock for the target of Rs 2,823 with a stop-loss of Rs 2,220 on the closing basis.

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Birla Cable

On the daily timeframe of Birla Cable, we can observe that the overall trend in the stock is bullish.

In the latest trading session, prices have given a breakout from Inverse Head and Shoulder pattern which points towards the beginning of the trend on the upside.

The breakout is confirmed by the high volumes while prices taking support from 200 days moving average which had acted as a variable support to the prices.

RSI plotted on the Daily timeframe have showed change in the polarity which indicates rising momentum.

We recommend traders and investors to buy and accumulate this stock for the target of Rs 185 with a stop-loss of Rs 122 on the closing basis.

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Exide Industries

Exide Industries was following the downward slopping channel while following Lower Low, Lower High formation.

In the latest trading session prices gave a breakout of the downward slopping channel and the rounding Bottom pattern which tells that the prices are reversing the trend on the upside.

The breakout is accompanied by the high volumes.

The Bollinger Band have started to expand which indicates the rising volatility in the prices for the upside move.

RSI plotted on the Daily as well as on weekly timeframe is above 50 mark indicating strong momentum in the price.

We recommend traders and investors to buy and accumulate this stock for the target of Rs 205 with a stop-loss of Rs 152 on the closing basis.

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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