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Trade Spotlight | What should you do with Jubilant Foodworks, Muthoot Finance, ITC on Monday?

ITC climbed 4 percent to close at Rs 284.35, which is higher than immediate previous top of Rs 282.35 on May 20 this year. The stock formed a big bullish candle on the daily scale with strong volumes. On the weekly basis as well, there was a robust bullish candlestick pattern formation, continuing Higher High Higher Low for third consecutive week.

July 04, 2022 / 06:20 AM IST
 
 
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The market closed with moderate losses and extended the downtrend for yet another session on July 1, the first day of the new monthly F&O series. All sectors, barring oil and gas, closed in the green and helped the market cut down significant losses from the day's low.

The BSE Sensex recouped more than 800 points from day's low and closed with 111 points loss at 52,908, while the Nifty50 strongly defended crucial 15,700 mark by showing a recovery of 240 points from intraday low and ended at 15,752, down 28 points.

The broader markets had a good day as the Nifty Midcap 100 index gained half a percent and Smallcap 100 index rose 0.4 percent.

Stocks that were in action and outperformed broader space included Muthoot Finance and Jubilant Foodworks which were the biggest gainers in the futures & options segment, while ITC was the top gainer in the Nifty50.

Muthoot Finance has formed a robust bullish candle on the daily charts with healthy volumes, rising 6.8 percent to Rs 1,042.65 and on the weekly scale too, there was bullish candlestick formation with good volumes.

Close

Jubilant Foodworks gained 5.7 percent at Rs 541.45 and formed a strong bullish candlestick pattern on the daily charts with above average volumes. Also there was Morning Star kind of pattern formation on the daily charts, which is generally known as a reversal pattern and on the weekly scale, there was Hammer kind of pattern formation, which is also a bullish reversal pattern.

ITC climbed 4 percent to close at Rs 284.35, which is higher than immediate previous top of Rs 282.35 on May 20 this year. The stock formed a big bullish candle on the daily scale with strong volumes. On the weekly basis as well, there was a robust bullish candlestick pattern formation, continuing Higher High Higher Low for third consecutive week.

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

Jubilant Foodworks

Since the last 5-6 months, the stock is consolidating within a broad trading range Rs 580-460 levels indicating strong consolidation. The stock has recaptured 20, 50 and 100 days SMAs (simple moving average) and is sustaining above the same.

This buying momentum was accompanied with rising volumes indicating increased participation at lower levels. With current close, the stock is approaching a "trendline" breakout level of Rs 550 levels, hence any decisive breakout above the same will cause upside momentum.

The daily and weekly strength indicators have turned bullish from the oversold zone which implies rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 600-630, with downside support zone of Rs 505-485 levels.

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Muthoot Finance

The stock is in downtrend across all the time frame forming a series of lower tops and bottoms indicating sustained downtrend. However with Friday's strong gains, the stock has decisive breakout from its past four months "down-sloping trendline" at Rs 1,025 levels on a closing basis.

In addition, the stock is well placed above the 20-day SMA (Rs 1,022) which reconfirms bullish sentiment. This breakout is accompanied with huge volumes which supports increased momentum.

The daily and weekly strength indicators have turned bullish from the oversold zone which implies rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,110-1,185, with downside support zone of Rs 960 levels.

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ITC

The stock is in a strong uptrend across all the time frames forming a series of higher tops and bottoms indicating sustained up trend. The stock is sustaining above 20, 50, 100 and 200 days SMA which confirms bullish sentiments.

The daily "band Bollinger" buy signal indicates rising momentum. Multiple resistance zone breakout at Rs 280 levels along with huge volumes signals increased participation.

The daily and weekly strength indicators have turned bullish from the oversold zone which implies rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 295-310, with downside support zone of Rs 270 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
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