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Trade Spotlight | What should you do with L&T Infotech, IRCTC, Bharat Dynamics and TTK Prestige now?

Mazhar Mohammad, of Chartviewindia.in, suggests options for investors either holding or aiming for some of the key market movers of Tuesday.

October 20, 2021 / 08:30 AM IST
 
 
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The bears have at last managed to sneak into Dalal Street, setting off a selling pressure in last hour of trade on October 19 after a seven-day bull run in the market. The benchmark indices, however, hit record highs on Tuesday morning.

The BSE Sensex crossed 62,000 for the first time and closed moderately down at 61,716.05, while the NSE Nifty50 scaled 18,600 levels in the opening tick but ended with a third of a percent loss at 18,418.80.

The broader markets hit quite hard after seeing better performance than benchmarks in last few sessions. The Nifty Midcap 100 index fell 2.17 percent and Smallcap 100 index 1.69 percent.

Stocks that were in focus include Larsen & Toubro Infotech, which was the biggest gainer in the F&O segment and hit a record high of Rs 7,063.35 after strong September quarter earnings, before closing with 16.07 percent gains at Rs 6,855.15. IRCTC was also in action, rallying up to Rs 6,396.30 (a record high) with 8.8 percent gains, but was caught in a bear trap in late trade to close down 7.19 percent at Rs 5,454.85.

State-owned defence company Bharat Dynamics gained up to Rs 455, the highest level since August 2020, before closing with 3.78 percent gains at Rs 428.75, while kitchen appliances and cookware manufacturer TTK Prestige crossed Rs 10,000 mark for the first time on Tuesday, hitting a record high of Rs 10,587.15, before seeing some selling pressure at higher levels and ending at Rs 9,888.9, up 12.09 percent on stock split news.

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Here's what Mazhar Mohammad of Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

L&T Infotech

This counter appears to have resumed its uptrend as it registered a break-away gap from its sideways consolidation of 12 sessions signalling the beginning of a fresh leg of upswing. Hence, as long as it sustains above its bullish gap zone of Rs 6,380-6,233, one can retain a bullish stance and look to buy the dip.

Interestingly on the weekly charts, this counter chalked out an ascending channel for last 18 weeks and based on that initial target can be in the zone of Rs 7,350–7,500. For a much bigger up move, it needs to register a breakout above the channel.

For the time being, fresh buying should be considered only on correction or consolidation towards Rs 6,400 levels where as investors who already hold should continue and look for a target placed in the zone of Rs 7,350–7,500 levels.

However, as technically stop loss looks far away that is below Rs 6,380, profit-booking in the next session can be a prudent option.

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IRCTC

Long Black Day is visible in this counter as it appears to have reversed its trend from the intraday high of Rs 6,396 levels which has erased major part of the recent rally from the lows of Rs 4,725.

Hence, going forward, its inability to sustain above Rs 4,996 levels can eventually drag it down towards Rs 4,700 levels which, as of now, appears to be a critical support and a close below that can severely damage this counter with targets towards Rs 4,000 levels.

Therefore, considering the sharp reversal of last session, it looks prudent to avoid buying the dip for time being, whereas any rally should be used to exit the current holding.

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TTK Prestige

This counter was consolidating in a range of Rs 9,589–8,600 for the last 71 trading sessions before registering a consolidation range breakout on the back of massive volumes. Interestingly, the range breakout target is placed around Rs 10,700 levels which should be presumed to have achieved at an intraday high of Rs 10,587 in the last trading session.

However, considering the fact that this counter witnessed a breakout on the back of news flows related to a stock split, the ideal strategy shall be to book profits around these levels as the current rally may not sustain as is evident from the price behaviour of different stocks during similar situations.

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Bharat Dynamics

This counter witnessed a sharp rally from the lows of Rs 368 to a high of Rs 455 in just seven trading sessions on the incrementally higher volumes. However, weak market sentiment seems to have resulted in profit-booking from the intraday high of Rs 455 levels.

Hence, in the next trading session, it needs to sustain above Rs 416 as a close below that can puncture the bullish sentiment. As the momentum looks high in this counter, if the dip attracts a fresh buying and if it manages to get past Rs 455 levels, then the next target shall be Rs 489.

For the time being, traders should hold with a stop loss below Rs 416 and look for an initial target of Rs 455 and beyond that Rs 489 levels.

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Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that 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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