Big Movers on D-St: What should investors do with Bajaj Finserv, Star Health and Delta Corp?

Indian market closed in the red for the second in a row on Thursday. The S&P BSE Sensex recouped losses and closed above 53,000.

Sectorally, buying was seen in power, banks, utilities, and capital goods while selling was seen in metals, auto, realty, and IT stocks.

Stocks which were in focus included names like

which fell nearly 2 per cent, Star Health and Allied Insurance which fell 1.8 per cent, and which was down by about 8 per cent.

Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

Bajaj Finserv: Rs 11,200 would act as an immediate trend reversal

In the last quarter, the stock corrected by over 35 per cent. On the daily and weekly charts, it is consistently forming a lower top formation. The short-term formation of the stock is still on the weak side.

However, momentum indicators are suggesting a strong possibility of a quick pullback rally from the current levels.

Rs 11,200 would act as an immediate trend reversal level for the bulls to take control. A close above this level could result in a sharp pullback rally till Rs 11,500-11,700.

On the flip side, a close below 11,200 continues. Below this, the stock could slip up to Rs 10,800-10,500.

Star Health: Avoid

The stock fell by over 25 per cent last month. Post lower top formation, the stock broke the important support level of Rs 620 and after breakdown, it intensified the weak momentum.

In addition, on weekly and monthly charts, the stock has formed a long bearish candle that also supports further weakness from the current levels.

We are of the view that weak formation is likely to continue in near future. However, one quick pullback rally is possible if it succeeds to trade above Rs 500. Above which, it could rally till Rs 525-535.

On the flip side, below Rs 500, the correction wave is likely to continue till Rs 480-475.

Delta Corp: Chart structure suggests rangebound activity

The stock corrected over 50 per cent in this quarter. On the daily and weekly charts, it is consistently forming lower top formation.

After a sharp correction, eventually, the stock took support near Rs 160 level. Currently, it is witnessing non-directional activity.

The chart structure suggests rangebound activity is likely to continue in near future. For the bulls, 20-day SMA (Simple Moving Average) or 180 would be the important breakout level to watch.

If the stock manages to close above the same, we could expect a quick uptrend rally towards Rs 190-195. On the flip side, trading below Rs 163 may increase further weakness up to Rs 159-155.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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