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Trade Spotlight | What should you do with R Systems International, Tarsons Products, TTK Prestige on Tuesday?

R Systems International was locked in 20 percent upper circuit at Rs 266.80, forming a robust bullish candle on the daily charts with far higher than average volumes, after hammer kind of pattern formation in the previous session. Even the relative strength indicator (RSI) as well as Stochastic have showed uptrend, indicating sentiments are strong.

July 05, 2022 / 06:56 AM IST
 
 
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Strong show in the last hour of trade helped the market close with more than half a percent gains on July 4, the first day of the week, supported by FMCG and banking & financial services stocks.

The BSE Sensex jumped more than 300 points to 53,235, while the Nifty50 gained over 80 points to close at 15,835, forming bullish candle on the daily charts after a hammer kind of pattern formation in the previous session, which is generally known as trend reversal pattern.

The broader markets also gained momentum on Monday on positive breadth. The Nifty Midcap 100 index rose 0.7 percent and Smallcap 100 index climbed 0.6 percent as about three shares advanced for every two shares declining on the NSE.

Stocks that were in action included R Systems International which was locked in 20 percent upper circuit at Rs 266.80, forming a robust bullish candle on daily charts with far higher than average volumes, after hammer kind of pattern formation in the previous session. Even the relative strength indicator (RSI) as well as Stochastic have showed uptrend, indicating sentiments are strong.

Tarsons Products climbed 12 percent to Rs 783 and has formed a large bullish candle with much higher than average volumes. RSI showed uptrend and Stochastic has given positive crossover.

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TTK Prestige rose 3.9 percent to Rs 854.25 and saw a bullish candlestick pattern formation with above average volumes. Even Oscillators RSI and Stochastic reported northward direction.

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

R Systems International

On weekly chart we can spot prices have shown a bounceback from 50 percent Fibonacci retracement level (Rs 196.50) of its prior advance 38 percent (October 2019) to Rs 354 (January 2022).

We witnessed a breakout from double bottom pattern on daily timeframe with high volume. Prices on weekly timeframe have shown a breakout from 16 week EMA (exponential moving average) which had acted as a strong variable support for prices.

RSI indicator on daily and weekly time frame is rising and is above 50, indicating that prices have strength to move on the upside.

Looking at the price and indicators evidence, we expect the stock prices to move higher till levels of Rs 320.

We recommend traders and investors to hold this stock with stop-loss of Rs 230 on closing basis.

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Tarsons Products

On the daily timeframe we witnessed prices have given a breakout from Cup and Handle pattern in the latest trading session. The breakout was followed by highest volume in the last 118 trading sessions.

The Cup and Handle pattern was formed at its crucial support level at Rs 595.

RSI indicator plotted on daily timeframe also has shown a breakout, currently at 70.9, suggesting a breakout with higher momentum.

Going ahead we expect the stock to move higher till the level of Rs 920.

We recommend investors and traders to buy and accumulate Tarsons with a strict stop-loss of Rs 720 on closing basis.

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TTK Prestige

On a weekly time frame we can spot that prices of TTK Prestige have taken  support at around the 61.8 percent Fibonacci retracement level (Rs 724). Prices are moving in a broader range of Rs 775-744 levels.

Around Rs 724 level, which is in sync with the Fibonacci retracement level 61.8 percent, we can spot change in the polarity by the prices.

Prices in the latest trading session have shown a close above 18 week EMA, which has acted as variable support for the prices.

On the indicator front, RSI is rising in daily as well as on weekly time frame, indicating strength in prices.

We recommend investors and traders to hold this stock with strict stop-loss of Rs 724 on 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
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