Indian market closed in the red on Friday and closed the week with a loss of over 2%.

The S&P BSE Sensex fell more than 450 points while the Nifty50 managed to hold on 22000.

Sectorally, buying was seen in stocks like oil & gas, energy, public sector, auto while buying was seen in telecom and FMCG stocks.

Stocks that were in focus include names like Solar Industries which rose more than 8% to hit a fresh 52-week high, VIP Industries hit a fresh 52-week low but managed to bounce back and Intellect Design hit a fresh 52-week high on Friday.

We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view: Analyst: Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio LtdSolar Industry: Buy

The stock witnessed a breakout from Pennant’s pattern on the upside that indicated an uptrend in the security. The increase in volume during the breakout indicates that buyers are interested in this security.

The price is above the Fast and Slow EMAs of 21 and 50 respectively, indicating an upward trend in the security price.

On the other hand, the fast Exponential Moving Average (EMA) is moving upwards, indicating a positive outlook for the security price.

On the momentum front, after cooling off, the Relative Strength Index (RSI) began to move in a northwesterly direction supporting price action.

The DI+ trading above the DI shows that there is an uptrend in a security price and ADX indicator trades above the DI, indicating strong movement.

Therefore, we expect the solar industry to continue its upward trend on the basis of the above setup.

Solar Industries-Mar 17

VIP Industries: Sell
VIP Industries gave a breakdown of the Rising Wedge pattern on the weekly time frame on Friday which indicates a negative trend.

A steady increase in volumes suggests that sellers are getting interested in selling the security. The momentum indicator RSI is moving in the southern direction and making LH and LL which is supporting the price action.

The DI- has crossed DI+ which indicates the start of a downtrend. Therefore, the point of action would be to exit based on that setup.

VIP Industries-Mar 17

Intellect Design: Hold
Intellect Design is trending upward with increasing volume indicating an uptrend. The price is trading near the rising trend line which is acting as a resistance.

The price trading above the Fast and Slow EMA indicates an uptrend in the security. The RSI momentum indicator is slowing down, suggesting that the strength of the move is weakening.

The DI+ is trading above DI- indicating an uptrend and ADX trading above both indicates strength.

Hence, based on the above technical setup, the position can be held till the time price is able to sustain above 980 levels.

Intellect Design-Mar 17

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


Source link