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Trade Spotlight | What should you do with L&T, Speciality Restaurants, Kajaria Ceramics, CarTrade Tech on Monday?

With Friday's strong gains, Speciality Restaurants has bounced back from its trendline support zone which remains a crucial support zone. The daily and weekly strength indicator RSI has turned bullish along with positive crossover indicating rising strength at lower levels.

July 11, 2022 / 07:01 AM IST
 
 
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The positive global cues with falling oil prices and volatility helped the market close half-a-percent higher for the third consecutive session on July 8. Select banking and financial services, FMCG, pharma and IT stocks supported the market.

The BSE Sensex gained more than 300 points to 54,482, and the Nifty50 jumped nearly 90 points to 16,221, while the broader markets climbed third of a percent.

India VIX, which measures the expected market volatility, fell by 4.2 percent to 18.40 levels, which made the bulls more comfortable on Friday.

Stocks that were in action included Larsen & Toubro which opened with a strong gap up and closed with 4.7 percent gains to Rs 1,687.45 on Friday, forming robust bullish candlestick pattern on the daily charts with strong volumes. Even the weekly setup was strong with higher high and higher low formation in last three straight week.

Kajaria Ceramics also saw gap up opening and rose 4.6 percent to close at Rs 1,027.50, forming bullish candle on the daily charts with above average volumes. Even its weekly setup was strong with bullish candle formation on the weekly scale with above average volumes and higher high higher low set up for third consecutive week.

CarTrade Tech was also active with rising 3.6 percent to Rs 673.4 on Friday, forming bullish candlestick pattern for fourth consecutive session with above average volumes for second straight day. During the week, the stock gained 14 percent, forming bullish candle on the weekly scale with higher high higher low formation for third consecutive week.

Speciality Restaurants climbed 7 percent to Rs 133 and formed bullish candle on the daily charts with above average volumes, while its weekly set up was good with bullish candlestick pattern formation 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:

Larsen & Toubro

On the daily and weekly time frame, the stock has broken out its six months "down-sloping channel" at Rs 1,630 levels. This breakout is accompanied with huge volumes indicating increased participation.

The daily and weekly strength indicator relative strength index (RSI) has turned bullish along with positive crossover indicating rising strength at lower levels.

Currently the stock is well placed above 20, 50 and 100 days simple moving average (SMA) which supports bullish sentiments. The daily "band Bollinger" buy signals suggest increased momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,780-1,850, with downside support zone of Rs 1,615-1,550 levels.

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Kajaria Ceramics

Since four months, the stock continues to consolidate within Rs 1,090-900 levels indicating accumulation. Huge volume spurts within this price range indicates increased buying interest at lower levels.

The stock is sustaining above 20 and 50 days SMA which reconfirms short term bullish sentiments. The daily and weekly strength indicator RSI has turned bullish along with positive crossover indicating rising strength at lower levels.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,100-1,150, with downside support zone of Rs 980-940 levels.

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CarTrade Tech

Since inception, the stock has been trending lower forming a series of lower tops and bottoms, however, since the past four months the stock witnessed sideways consolidation within Rs 720-540 levels. This consolidation accompanied huge volume indicating accumulation at lower levels.

Currently the stock is well placed above 20, 50 and 100 days SMA which supports bullish sentiments.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 800-860, with downside support zone of 610-570 levels.

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Speciality Restaurants

Since April 2022, the stock was in corrective mode, however, with the past couple of weeks' buying momentum the stock rebounded from its prior breakout zone of Rs 108 levels. The stock has recaptured its 20, 50 and 200 days SMA and rebounded sharply indicating strength at lower levels.

With Friday's strong gains, the stock has bounced back from its trendline support zone which remains a crucial support zone. The daily and weekly strength indicator RSI has turned bullish along with positive crossover indicating rising strength at lower levels.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 150-165, with downside support zone of Rs 122-115 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