Moneycontrol PRO

Trade Spotlight | What should you do with Tata Teleservices, IIFL Finance, IOL Chemicals, Marathon Nextgen on Monday

The benchmark indices ended almost 2 percent lower on June 10; global cues are expected to influence market direction

June 13, 2022 / 06:27 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

The market fell almost 2 percent on June 10, tracking weakness in global counterparts amid increasing inflation concerns and growth worries.

The Sensex plunged more than 1,000 points, or 1.8 percent, to close at 54,303, while the Nifty slipped 276 points, or 1.7 percent, to 16,202.

IT, financial services and banks were the prominent losers. The broader space also came under pressure, as the Nifty midcap 100 index declined 0.8 percent and smallcap 100 index 1.1 percent.

The volatility remained below 20 despite the turmoil, a small consolation on another bad day for the market. India VIX, the fear index, was up 2.27 percent to 19.58 levels.

Stocks in action included Tata Teleservices, which was locked in a 10 percent upper circuit at Rs 140.50, and Marathon Nextgen Realty that was also locked in a 20 percent upper circuit at Rs 172.65.

Close

IIFL Finance rallied 7.7 percent to Rs 353.70 and IOL Chemicals and Pharmaceuticals climbed 7.3 percent to Rs 355.

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

Tata Teleservices

The overall major trend is bullish, however, the short to medium-term trend is corrective. With this correction, the stock has revisited its 20 and 200-day simple moving average (SMA), which remains a crucial support zone.

The buying momentum was accompanied with huge volumes indicating buying interest near the support zone. The daily and weekly strength indicator relative strength index (RSI) is in bullish mode, which supports rising strength. The daily band Bollinger “buy” signal suggests increased momentum.

Investors should buy, hold and accumulate the stock with an expected upside of Rs 180-200, with downside support of Rs 125-110.

Image51162022

IIFL Finance

With the previous week's 7 percent gains, the stock is approaching a four-year "multiple resistance zone" of Rs 380-400, hence any decisive breakout on a weekly closing basis may lead to an upward breakout.

Huge volumes near multiple support zones of Rs 280 level signal strong accumulation at lower levels. The stock is well placed above its 20, 50, 100 and 200-day SMAs, which reconfirm bullish sentiments on short- to medium-term charts.

The daily weekly and monthly strength indicator RSI is in bullish mode, indicating rising strength across all time frames.

Investors should buy, hold and accumulate the stock with an expected upside of Rs 400-450, with a downside support zone of Rs 320-300.

Image61162022

IOL Chemicals

On short- to medium-term charts, the stock is in a downtrend, forming a series of lower tops and bottoms. For the past four-five months, the stock has been consolidating in a broad trading range of Rs 510-320, indicating the absence of strength on either side.

However, the stock has witnessed a huge volume spurt near the lower end of the consolidation range, indicating increased participation.

The daily strength indicator has turned bullish, which signals a possible bounce-back rally. The stock is sustaining below its 20, 50, 100 and 200-day SMAs, which supports bearish sentiments. Hence, any relief rally towards the resistance of Rs 400-430 levels is an exit opportunity for traders.

Traders are advised to use any relief rally as an exit opportunity with a resistance zone of Rs 400-430, with a downside support zone of Rs 300-280.

Image71162022

Marathon Nextgen Realty

The stock is in a strong uptrend across all time frames, indicating a sustained up trend. In the June 10 session, the stock gained 20 percent with huge volumes, indicating increased participation.

The stock has recaptured its 20-day SMA and rebounded sharply. The daily, weekly, and monthly strength indicator RSI is in bullish mode, indicating rising strength across all time frames. The daily and weekly band Bollinger signals increased momentum.

Investors should buy, hold and accumulate this stock for an expected upside of Rs 200-230, with downside support zone of Rs 140-130.

Image81162022

Disclaimer: The views and investment tips expressed by 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
Sections
ISO 27001 - BSI Assurance Mark