Trade Spotlight | What should you do with Zomato, CG Power, Tejas Networks on Monday?

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The market had a rangebound and volatile session on October 7 after an uptrend in the last two sessions, as traders awaited US jobs data that later in the day largely came in line with analysts' estimates and unemployment rate that fell to 3.5 percent from 3.7 percent, indicating aggressive rate hikes by the Federal Reserve in its upcoming policy meetings.

The BSE Sensex fell 31 points to 58,191, and the Nifty50 declined 17 points to 17,315 on Friday, while there was a mixed trend in the broader market as the Nifty Midcap 100 index lost 0.24 percent and Smallcap 100 index rose 0.24 percent.

The volatility also cooled down further but unless and until it settles and stays below 18 for a longer time, the stability is unlikely in the market, experts said. India VIX, the fear index fell 2.6 percent to 18.8 levels.

Stocks that were in action and bucked trend included Zomato which jumped more than 6 percent to Rs 69.55, the highest closing level since June 24, continuing uptrend in five out of six consecutive sessions. The stock has seen bullish candlestick pattern formation on the daily charts with above average volumes.

CG Power and Industrial Solutions rallied nearly 5 percent to Rs 252.7 and formed strong bullish candle on the daily charts for second consecutive session after couple of high wave candles.

Tejas Networks was up 4.4 percent at end at record closing high of Rs 738.25, continuing northward journey for seven out of eight straight sessions, and forming big bullish candle on the daily charts. Even the volume was above average in last five out of seven consecutive days.

Here's what Vaishali Parekh of Prabhudas Lilladher recommends investors should do with these stocks when the market resumes trading today:

Zomato

The stock has indicated a channel breakout above Rs 65 levels with a bullish candle formation pattern on the daily chart with decent volume participation witnessed. And maintaining above the significant 50 DEMA (days exponential moving average) level of Rs 62 has improved the bias and further rise is anticipated.

With a stop-loss of Rs 65, one can trade for further targets of Rs 73-75 levels, as justified by the RSI (relative strength index) indicator also which is on the rise and has shown strength for further upward move.

Tejas Networks

The stock recently with a higher bottom formation pattern on the daily chart has given a breakout above the previous peak level of Rs 681 zone to strengthen the trend and is anticipated to perform well in the coming days with new targets of Rs 760-770 levels visible.

With the stop-loss to be maintained at Rs 680 zone, one can trade/hold the position and the overall trend would turn weak only after a breach below Rs 590 levels.

CG Power and Industrial Solutions

The stock has overall been in a rising trend and with series of higher bottom formation pattern on the daily chart maintaining above the significant 50 DEMA level has witnessed a strong trend.

And currently with two big bullish candles has immense scope of upside movement in the coming days.

The RSI has shown strength which is on the rise and is anticipated to do well further. With Rs 230 as the stop-loss maintained, one can expect for further targets of Rs 270-275 in the near term time frame.

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.