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Trade Spotlight | What should you do with Jindal Stainless, Escorts Kubota, Finolex Cables on Tuesday?

Finolex Cables was also in focus, rising nearly 7 percent to Rs 567.5, the biggest closing level since December 15, 2021 and formed healthy bullish candle on the daily charts with large volumes. Also there was a big breakout of nearly month long consolidation.

November 22, 2022 / 06:43 AM IST
 
 
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The market continued to reel under pressure with the Nifty50 falling decisively below the crucial 18,300 mark which had been holding smartly in the recent past, tracking nervousness in the global counterparts on November 21.

The BSE Sensex corrected more than 500 points to 61,145, and the Nifty50 fell nearly 150 points to 18,160, while the broader markets ended flat amid negative breadth. About five shares declined against three rising shares on the NSE.

The volatility index India VIX has risen by 2.83 percent to 14.80 levels, but still remained below 15 mark which can still be supportive for the market.

Stocks that bucked trend included Jindal Stainless which jumped more than 8 percent to Rs 180.65, the highest closing level since April 29 this year and formed long bullish candle on the daily charts with strong volumes. The stock has also seen breakout of long downward sloping resistance trend line adjoining February 8 and November 17 this year.

Escorts Kubota shares also rallied more than 8 percent to end at record closing high of Rs 2196 and formed robust bullish candle on the daily charts with healthy volumes. In fact, there was a breakout of more than a month long consolidation.

Finolex Cables was also in focus, rising nearly 7 percent to Rs 567.5, the biggest closing level since December 15, 2021 and formed healthy bullish candle on the daily charts with large volumes. Also there was a big breakout of nearly month long consolidation.

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

Escorts Kubota

On looking at the broader picture of Escorts, we can spot that the stock is currently trading above all its crucial support level.

The stock has witnessed a change in its polarity around Rs 1,900 level pointing towards the rising bullish sentiment behind the prices.

In the last trading session, prices have given a breakout from the triangle pattern indicating continuation of prior uptrend.

The Bollinger band on the daily timeframe have started to expand, indicating rising volatility of the prices.

RSI (relative strength index) on the daily timeframe have shown breakout too, reflecting the rising momentum of the underlying.

We recommend trader and investor to buy this stock for the target of Rs 2,500 where the stop-loss must Rs 2,012 on the closing basis.

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Jindal Stainless

After the downtrend since April 2022, JSL post November 4, 2022 has started to form higher high, higher low formation after breaching the swing high of Rs 146.70 (September 2022).

The stock on November 4, 2022 had given a breakout from the Cup & Handle Pattern which indicated Reversal of the trend to the upside.

The 14 and 28 days EMA (exponential moving average) have already given a positive crossover which confirms the reversal to the upside.

MACD (moving average convergence and divergence - 14,28,9) have also shown a positive crossover above zero line pointing towards the tendency of the prices to trend.

We recommend traders and investors to buy this stock for the target of Rs 205 where the stop-loss must be Rs 157 on the closing basis.

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Finolex Cables

Finolex Cables, post May 2022, have started to move in the form of higher high, higher low formation, which points the uptrend has been established.

In the last trading session prices have given a breakout from the rectangle pattern which indicates the continuation of prior uptrend.

Prices are trading above upper Bollinger band which shows the rising volatility in the current uptrend.

The Bollinger band have opened with strong volumes participation.

RSI on the daily timeframe have shown a range shift reflecting the rising momentum behind the stock prices.

Going ahead we expect the prices to go higher till the level of Rs 655 where the stop-loss must be Rs 523 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