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Trade Spotlight | What should you do with IFB Industries, GNFC, Federal Bank on Monday?

IFB Industries surged more than 11 percent to Rs 985.20 and formed robust bullish candlestick pattern on the daily charts with large volumes, giving a highest close since September 21.

October 17, 2022 / 06:27 AM IST
 
 
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The market turned strong after a day of weakness and clocked a percent gains on October 14, though it was off day's high due to selling in auto, metal and oil and gas stocks. Banking & financial services, and information technology were the actual drivers on Friday.

The BSE Sensex climbed nearly 700 points to 57,920, and the Nifty50 gained more than 170 points to 17,186, but the broader markets had a flat trade amid equal market breadth.

The cooling down volatility also aided the rally on Friday. India VIX, which measures the expected volatility in the market, fell by 10 percent to 18.26 levels.

Stocks that were in action included GNFC and Federal Bank which were the biggest gainers in the futures and options segment, while IFB Industries was the top gainer in the Nifty500 index.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) clocked more than 5 percent gains to close at Rs 698 and formed decent bullish candle on the daily charts with high volumes.

Federal Bank rose over 4 percent to end at record closing high of Rs 130.35 and formed bullish candle on the daily charts with robust volumes, making higher high higher low formation for fourth consecutive session. On monthly charts, there was strong bullish candlestick formation, making higher high higher low for fourth month in a row.

IFB Industries surged more than 11 percent to Rs 985.20 and formed robust bullish candlestick pattern on the daily charts with large volumes, giving a highest close since September 21.

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

IFB Industries

With Friday's strong gains of 11 percent, the stock has recaptured its 20, 50, 100 and 200 days SMA (simple moving average) and rebounded sharply. This buying momentum is observed from 8-10 months multiple support zone of Rs 850-830 levels.

Huge volumes on this rally signifies increased participation near major support zones. The daily and weekly RSI (relative strength index) is placed positive which reconfirms the rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,100-1,150 with downside support zone of Rs 870-850 levels.

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GNFC

The stock has strongly bounced from its five months up-sloping trendline support zone of Rs 615 levels along with huge volume indicating increased participation.

This buying momentum has been observed from 200-day SMA (Rs 657) which remains a crucial support zone. The daily RSI is in bullish mode which reconfirms the rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 780-810, with downside support zone of Rs 660-640 levels.

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Federal Bank

The stock is in strong uptrend across all the frames forming a series of higher tops and bottoms. The stock is sustaining above its 20, 50, 100 and 200 days SMA which reconfirms bullish sentiments.

With last week's gains, the stock has decisively broken out its "multi-week" resistance zone of Rs 125 on a closing basis along with rising volumes indicating strength. The daily, weekly and monthly RSI is in bullish terrain which reconfirms sustained and rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 150-185, with downside support zone of Rs 120-110 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