Trade Spotlight | What should you do with UTI AMC, JK Lakshmi Cement, General Insurance Corporation of India on Tuesday?

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26 Aug, 2025 12:21

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The market rebounded after two-day correction and clocked eight-tenth of a percent gains on December 19. In fact the equity benchmarks recovered all their previous day's losses, led by short covering and positive mood among the European peers.

The BSE Sensex rallied more than 460 points to 61,806, while the Nifty50 rose over 150 points to 18,420 and formed bullish candle on the daily charts, led by auto, FMCG, metal, and select banking & financial services stocks.

The northward journey was also seen in broader markets as the Nifty Midcap 100 and Smallcap 100 indices gained half a percent each. Even the breadth was positive on Monday as about three shares gained against two falling shares on the NSE.

Stocks that were in action and performed better than broader markets included General Insurance Corporation of India which was the biggest gainer in the Nifty500 index. The stock rose over 12 percent to Rs 187.35 apiece, highest & similar closing level since July 14, 2021 and formed long bullish candle on the daily charts with robust volumes. The stock has seen a breakout of long downward sloping resistance trend line adjoining March 17, 2021 and December 15, 2022.

UTI AMC shares had a gap up opening and gained more than 11 percent to Rs 859.55, the highest closing level since August 16 this year. The stock has formed long bullish candle on the daily charts with large volumes, and has seen a breakout of horizontal resistance trend line adjoining several points (February 9, February 17, and August 30 this year).

JK Lakshmi Cement was up 2 percent at Rs 867 and formed bullish candle on the daily charts with making higher highs higher lows. On monthly charts, there was a breakout of long downward sloping resistance trend line adjoining July 2021 and November 2021.

By looking at the broader picture of JK Lakshmi Cement, we can observe that the stock is trading at life high which tells that the stock already is in strong momentum.

The stock in the first week of December 2022 gave a breakout from the rounding bottom pattern indicated continuation of the prior uptrend.

The stock is continuously hovering around the Upper Bollinger band which points towards the rising Volatility of the stock.

The momentum indicator RSI (relative strength index) is rising and have sustained well above 60 mark which shows the strong momentum of the underlying uptrend.

We recommend investors and trader to buy this stock for the target of Rs 1,100, where the stop-loss must be Rs 775 on the closing basis.

UTI AMC have surpassed the swing high of Rs 803.80 (December 7, 2022), this initiates the formation of Higher High, Higher Low.

The stock in the last trading session has given a breakout from the Inverse Head & Shoulder pattern, which points towards the reversal to the upside from prior downtrend move. The breakout is confirmed as it is accompanied by high volumes and a Gap

The stock confirms reversal as it also have surpassed the 50-day EMA (exponential moving average). The RSI on the Daily timeframe have shown a range shift which shows the rising momentum of the prices.

We recommend Investors and trader to buy this stock for the target of Rs 1m100, where the stop-loss must be Rs 750 on the closing basis.

General Insurance Corporation of India has breached the crucial resistance of Rs 150 level which the prices have respected since September 2021.

The stock in the prior week gave a breakout from the rounding bottom pattern, which indicates beginning of the trend to the upside. The prices have sustained well above the upper Bollinger band pointing towards the rising volatility for uptrend.

The RSI plotted on the daily timeframe have sustained well above 60 mark reflecting presence of strong momentum.

We recommend traders and investors to hold this stock for the target for Rs 244 where the stop-loss must be Rs 165 on the closing basis.