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Trade Spotlight | What should you do with RHI Magnesita, Coffee Day, Affle India and HCL Tech

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

January 12, 2022 / 07:14 AM IST
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The market extended gains for the third consecutive session with the Nifty50 rising more than 50 points to close above 18,050 and the BSE Sensex climbing over 200 points to breach the 60,600 levels on January 11. The rally was supported by IT and select banking and financials stocks.

But the broader markets ended flat with a positive bias. The Nifty Midcap 100 and Smallcap 100 indices gained 0.09 percent and 0.06 percent.

Stocks that were in focus include HCL Technologies, which was the biggest gainer in the Nifty50, rising 4.31 percent to Rs 1,343.65, and Coffee Day Enterprises which was locked in 20 percent upper circuit at Rs 51.75 on Tuesday and more than doubled in the last four-and-a-half months.

RHI Magnesita India and Affle India were also in focus on Tuesday which both ended at record closing highs, rising 7.09 percent to Rs 413.15 and climbing 6.07 percent to Rs 1,388.40 respectively on the NSE.

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

Close

RHI Magnesita India

This leading supplier of high-grade refractory products proved to be a 4-bagger from March 2020 lows of Rs 108 levels. In the current week, it seems to have registered a fresh breakout after 16 weeks of corrective and consolidation phase to once again trade in the uncharted territories.

Moreover, for the last 56 weeks, it appears to be moving in a well-defined ascending channel and interestingly the current strong move is coming after a couple of weeks of consolidation around demand line of the said channel.

Hence, as long as it sustains above Rs 400 levels, one can expect higher targets placed around Rs 500 levels. Therefore, positional traders can hold with a stop-loss below Rs 400 levels on closing basis and look for targets of Rs 490 where as fresh buying should be considered on dip clos to Rs 410 levels.

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HCL Technologies

Strong up move of last trading session hints that the recent correction, from the highs of Rs 1,340 to Rs 1,277, is over and this counter has resumed its up-move. In that scenario, initially it can head to test its life time highs of Rs 1,377 levels and beyond that a higher target close to Rs 1,400 can't be ruled out.

However, this strong up-move can be in anticipation of upcoming results and hence it may remain volatile and any disappointment on the results front shall weaken this counter. Technically, weakness shall resume on a close below the Rs 1,277 levels.

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Affle India

This counter appears to be in a strong long-term uptrend as it managed to keep its head above the water with consistent new highs. The strong up-move of last trading session, after a brief four-day consolidation, is only pointing towards continuation of its upswing.

Hence, sustaining above the Rs 1,300 levels, based on line studies on long-term charts, a higher target of Rs 1,600 can be expected. Positional traders can hold and any mild dip can be an opportunity to create fresh longs with a stop below Rs 1,300 levels.

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Coffee Day Enterprises

This counter appears to have registered a consolidation breakout as it witnessed a large upswing on the back of massive volumes in the last trading session. However, as long-term trend is down, it needs to clear its immediate hurdle present around Rs 54 levels.

In that scenario, a bare minimum target of Rs 80 can be expected as it is yet to retrace a bare minimum 23 percent of its entire fall from the 2019 highs of Rs 318 to June 2020 lows of Rs 14.

Therefore, positional traders can remain invested with a stop-loss below Rs 44 levels, whereas dips around Rs 46 can be considered as an opportunity to create fresh longs.

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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.



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