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Trade Spotlight | What should you do with Shoppers Stop, Sharda Cropchem, SPARC, Hitachi Energy and Bajaj Auto?

Trade Spotlight | Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today

January 24, 2022 / 07:17 AM IST
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The market fell for the fourth consecutive session on January 21 as bears tightened their grip over Dalal Street. The BSE Sensex corrected more than 400 points to 59,037, while the Nifty50 declined 140 points to 17,617, weighed by selling pressure across sectors, barring FMGC.

IT, Pharma, Private Bank and Metal indices were down 1.5 percent to 2 percent, while the PSU Bank index plunged 3 percent. The broader markets witnessed more selling pressure than frontline indices as the Nifty Midcap 100 and Smallcap 100 indices were down more than 2 percent each.

Stocks that were in focus include Shoppers Stop, which hit a fresh 52-week high of Rs 425 before closing with 4.58 percent gains at Rs 378.05, Sharda Cropchem, which touched a 52-week high of Rs 409.80 before closing 4 percent higher at Rs 379.3, and Sun Pharma Advanced Research Company, which climbed to a new 52-week high of Rs 337.85 before closing 0.3 percent higher at Rs 322.15.

Among others, Hitachi Energy India hit a record high of Rs 3,210.15 before closing with 7.41 percent gains at Rs 3,030.75, and Bajaj Auto which was the top gainer in the Nifty50, rising 3.36 percent to Rs 3,419.80.

Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Close

Shoppers Stop

On the daily and weekly chart, the stock is in a very strong up-trend forming a series of higher tops and bottoms. The stock is placed well above its 100-day simple moving average (SMA Rs 317) which remains a crucial support zone.

With the current close, the stock has decisively broken out its past 8-10 week down sloping trendline which remains a positive sign. This breakout is accompanied with huge volumes indicating increased participation.

The daily, weekly and monthly relative strength index (RSI) continue to remain bullish along with positive crossover which supports upside momentum. The daily Band-Bollinger buy signal indicates rising momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 450-485, with downside support zone of Rs 340-335 levels.

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Sharda Cropchem

On the daily chart, the stock has witnessed a 'rounding bottom' breakout along with past one year multiple resistance zone breakout at Rs 380 levels. Rising volumes at breakout levels signals increased participation.

The weekly Band-Bollinger buy signal indicates rising momentum. On the weekly time frame, the stock is in a strong up-trend. It is well placed above its 20, 50, 100 and 200-day simple moving average (SMA) which reconfirm bullish sentiments.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 430-460, with downside support zone of Rs 360-345 levels.

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Sun Pharma Advanced Research Company

On January 7, the stock has decisively broken out its past 5-6 months 'multiple resistance' zone at Rs 310 levels. This breakout was accompanied with huge volumes indicating rising participation. Since past couple of weeks price action, the stock manages to hold this breakout zone on a weekly closing basis representing sustained strength at higher levels.

On the weekly and monthly time frames the stock is inching up forming a series of higher tops and bottoms.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 360-385, with downside support zone of Rs 310-300 levels.

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Hitachi Energy India

On the daily time frame, the stock has observed a strong breakout from its five months 'multiple resistance' zone of Rs 2,800 levels indicating resumption of the earlier up move.

Huge volumes at breakout zone signals rising participation. The daily and weekly Band -Bollinger buy signal indicate rising momentum. This buying momentum was observed from its 20 and 50-day SMA (Rs 2591) which remains a crucial support zone.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,280-3,400, with downside support zone of Rs 2,800 levels.

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Bajaj Auto

In Friday's session, the stock has exactly rebounded from its 50 percent Fibonacci retracement support zone of Rs 3,277 of the earlier upmove (Rs 3,027-3,527). In addition to this, the daily 20 and 50 day SMA bullish crossover signals bullish sentiments ahead.

Huge and rising volumes near supports representing strong accumulation at lower levels. Weekly strength indicator RSI bullish crossover supports upside momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,600-3,750, with downside support zone of Rs 3,270 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.



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