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Trade Spotlight | What should you do with Sterling & Wilson, EIH, Butterfly Gandhimathi Appliances today?

EIH was the second stock which rose 2 percent to Rs 199, the highest closing level since September 7 and formed bullish candlestick pattern on the daily charts, while Butterfly Gandhimathi Appliances climbed 7 percent to end at record closing high of Rs 1,708 and formed decent bullish candle on the daily charts.

September 26, 2022 / 06:33 AM IST
 
 
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The selling in global counterparts amid mounting recession fears in the US dented market sentiments on September 23. The BSE Sensex fell more than 1,000 points to 58,099, and the Nifty50 plunged over 300 points to 17,327.

All the sectors caught in bear trap with banking & financial services, and realty being the biggest losers. The broader markets also traded sharply lower on last Friday as the Nifty Midcap 100 and Smallcap 100 indices tanked more than 2 percent each.

The volatility index closing above 20 was also favourable for bears to keep tight control over Dalal Street. India VIX, the fear index jumped 9.44 percent to 20.59 levels.

Stocks that were in action and outperformed the broader markets included Sterling and Wilson Renewable Energy which gained 2.4 percent to close at Rs 337.1, continuing uptrend for fourth consecutive session and formed Shooting Star kind of pattern on the daily charts on Friday.

EIH was the second stock which rose 2 percent to Rs 199, the highest closing level since September 7 and formed bullish candlestick pattern on the daily charts, while Butterfly Gandhimathi Appliances climbed 7 percent to end at record closing high of Rs 1,708 and formed decent bullish candle on the daily charts.

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

Sterling and Wilson Renewable Energy

Since last one year the stock was in corrective mode, however, with current week's gains the stock has decisively broken out its one year "down-sloping trendline" on a closing basis. This breakout is accompanied with huge volumes indicating increased participation.

The stock is well placed above 20, 50, 100 and 200 days SMA (simple moving average) which supports bullish sentiments.

The daily, weekly and monthly RSI (relative strength index) is in bullish mode which reconfirms bullish trend. The daily and weekly "Band Bollinger" buy signal suggests increased momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 380-400 with downside support zone of Rs 315-300 levels.

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EIH

The stock is in a strong up trend forming a series of higher tops and bottoms representing bullish sentiments. The stock is well placed above the 20, 50, 100 and 200 days SMA which supports bullish sentiments.

The stock has also confirmed "rounding bottom" formation indicating positive bias. The weekly "Band Bollinger" buy signal suggests increased momentum. Rising volumes on a rally suggests increased momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 215-230 with downside support zone of Rs 180-175 levels.

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Butterfly Gandhimathi Appliances

The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. The stock has recaptured 20-50 days SMA and rebounded very sharply. This buying momentum is accompanied with huge volumes indicating increased participation.

The daily weekly monthly RSI is continued to remain bullish indicating rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,800-1,880 with downside support zone of Rs 1,500-1,450 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