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Trade Spotlight | What should you do with Reliance Industries, Persistent Systems, TTK Prestige on Friday?

Unless TTK Prestige is trading below Rs 815 or 50 day SMA, positional traders can retain an optimistic stance and look for a target of Rs 900-925. Fresh buying can be considered now and on dips if any between Rs 860 and Rs 845 levels with a stop-loss below Rs 815.

April 29, 2022 / 07:19 AM IST
 
 
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Positive global cues and FII buying helped the benchmark indices rally more than 1.2 percent on April 28, the monthly expiry session for April derivative contracts. FMCG, Bank, financial services, technology, pharma and metal stocks supported the market.

The BSE Sensex gained more than 700 points to close above 57,500, and the Nifty50 jumped more than 200 points to nearly 17,250 levels.

The broader markets also gained, but underperformed frontliners. The Nifty Midcap 100 index climbed six-tenth of a percent and Smallcap 100 index gained 0.4 percent.

Stocks that were in focus include index heavyweight Reliance Industries which hit a fresh record high of Rs 2,851 to become the first listed company to cross market capitalisation of over $250 billion in India, closing with 1.5 percent gains at Rs 2,820.

Among others, software services provider Persistent Systems jumped 5.7 percent to Rs 4,309, and kitchen appliances maker TTK Prestige climbed nearly 10 percent to Rs 853.20.

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Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

Reliance Industries

After a short term price correction, the stock drew support near 20 day SMA (simple moving average) and reversed sharply. After reversal it is comfortably trading above 20 day SMA. On daily and weekly charts, the stock is holding higher bottom formation indicating further uptrend from current levels.

We are of the view that the stock is into the strong uptrend and strong formation is likely to continue if it succeeds to trade above 20 day SMA or Rs 2,700. Above this, it could hit the level of Rs 2,900-2,950.

On the flip side, below Rs 2,700 or 20 day SMA uptrend would be vulnerable.

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Persistent Systems

After sharp correction from the level of Rs 4,950, it took support near 200 day SMA and bounced back sharply. In the last two days, it recovered over 7 percent. On last Thursday, after a volatile trading session the stock has formed long leg Doji candlestick formation suggesting indecisiveness between bulls and bears.

Currently the stock is witnessing non-directional activity perhaps, and traders are waiting for either side breakout.

For the bulls, Rs 4,400 would be the important breakout level to watch. And if the stock manages to close above the same, we could expect quick uptrend rally towards Rs 4,600. On the flip side, trading below Rs 4,150 may increase further weakness up to Rs 4,000-3,950.

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TTK Prestige

After a lengthy correction, the stock has formed a double bottom formation. Last Thursday, the stock opened with a positive note and rallied 10 percent. A strong price volume rally near 50 and 20 day SMA indicates further uptrend from current levels.

On daily charts, it has formed long bullish candle and after a long time it succeeded to close above 50 and 20 day SMA.

Unless it is trading below Rs 815 or 50 day SMA, positional traders can retain an optimistic stance and look for a target of Rs 900-925. Fresh buying can be considered now and on dips if any between Rs 860 and Rs 845 levels with a stop-loss below Rs 815.

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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.

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.



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