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Trade Spotlight | What should you do with Indraprastha Gas, Cummins India, Bharat Dynamics on Friday?

Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.

August 12, 2022 / 08:07 AM IST
 
 
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Positive global cues following decline in US inflation for July cheered markets on August 11. The consistent FIIs buying also aided sentiment.

Banking & financial services, and technology stocks helped the benchmark equity indices close at four-month high. The BSE Sensex rallied more than 500 points to 59,333, while the Nifty50 climbed 124 points to 17,659.

The buying was also seen in broader markets as the Nifty Midcap 100 and Smallcap 100 indices gained 0.87 percent each.

Stocks that were in action included Indraprastha Gas and Cummins India, which were the top gainers among the futures & options segment stocks.

Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.

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Cummins India rose 6 percent to end at record closing high of Rs 1,237.60, forming large bullish candle on the daily charts with robust volumes, especially after high wave candle.

Bharat Dynamics also saw record closing high of Rs 884.20, up 4.3 percent and formed bullish candle on the daily charts with above average volumes.

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

Indraprastha Gas

In this week so far, the stock rallied over 15 percent. After a short term correction, the stock took the support near Rs 350 and reversed. On daily and weekly charts, it has formed long bullish candle which supports further uptrend from the current levels.

For the swing traders now, Rs 395 could be the key level to watch. If stock manages to trade above the same then we could expect uptrend continuation wave up to Rs 420-430.

On the flip side, below Rs 395, traders may prefer to exit from trading long positions.

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Cummins India

On last Thursday, the stock has rallied over 6 percent. After a muted opening it quickly surpassed the short term resistance of Rs 1,220. A promising bullish candle on daily charts and strong volume activity indicating further uptrend in the near future.

The texture of the pattern suggest positive momentum will continue in the near term if stock succeeds to trade above Rs 1,200 level.

For the trend following traders, Rs 1,220-1,200 would be the sacrosanct levels, and above which we can expect uptrend continuation wave up to Rs 1,260-1,285.

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Bharat Dynamics

In this quarter so far, the stock rallied nearly 30 percent. After a promising short term uptrend rally, currently the stock is trading near to its all-time high level.

On daily and intraday charts, the stock has formed higher bottom series pattern which indicating continuation of uptrend in the near future.

For the positional traders now, Rs 820 could be the key level to watch. If stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 940-965. However, below Rs 820, uptrend would be vulnerable.

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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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