Big movers on D-Street: What should investors do with RailTel, TVS Motor and IREDA?
Stocks that were in focus include names like RailTel, which rose 5.81%, TVS Motor, which jumped 2.19%, and IREDA, whose shares gained nearly 1% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
RailTel
The Counter has witnessed a breakout of a long consolidation above 450 levels with strong volume and hit their all time high level 617.
But from the higher levels the counter has shown some profit booking and retested its last breakout level at 450 and starts a new leg towards 550 levels in the near term. The overall structure is very bullish as it trades above its all-important moving averages.
The pattern suggests an immediate target of Rs 550, while it has the potential to move further upside till 1600 levels. On the downside, Rs 430 will act as an immediate support level.
MACD (Moving average convergence divergence) are supporting the current strength whereas momentum indicator RSI (relative strength index) is also positively poised.
TVS Motor
It is forming higher highs and higher lows formations and also witnessed a breakout of a long consolidation and closed above 2700 on the longer timeframe with strong volume.
The overall structure of the counter also looks lucrative for long-term investment, as it is trading above its all important moving averages.
However, momentum indicators such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are currently in a negative position. On the upside, Rs 2900 is a significant psychological resistance level. If it surpasses this level, we can anticipate a move towards the 3000+ levels in the near term. On the downside, Rs. 2550 serves as the support level.
IREDA
The stock has recently broken out of a prolonged consolidation phase above the 230 level, supported by strong volume, and reached an all-time high of 310. Following this high, some profit-taking occurred, causing the stock to retrace and retest the previous breakout level around 230.
From this point, it has begun a new rally, aiming for the 300 level in the short term. The overall trend remains very bullish, with the stock trading above all its key moving averages.
The current pattern suggests an immediate target of Rs 300, with the potential to move further up towards 320 in the longer term. On the downside, the Rs 220 level serves as immediate support.
Technical indicators reinforce this bullish outlook, as the MACD (Moving Average Convergence Divergence) supports the ongoing strength, and the RSI (Relative Strength Index) is also positioned positively, indicating a strong upward momentum.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
