Big Movers on D-St: What should investors do with ITC, IOC and Infosys?

Indian markets closed in red for the second straight day on Thursday, tracking weak global cues. The S&P BSE Sensex fell over 300 points while the Nifty50 managed to hold onto 17,600 levels.

At the sector level, buying was seen in FMCG, consumer discretionary, autos and utilities, while banks, the public sector and energy saw selling pressures.

Stocks that were in focus included names like

which rose more than 1 percent to make a new 52-week high, , which made a 52-week low, and , which also fell about 1 percent to make a new 52-week low.

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

Infosys: Avoid
The stock has corrected nearly 8 percent so far in September. It is consistently forming lower top formations on both the daily and weekly charts.

The short term structure of the stock is weak but also in an oversold state. As long as Infosys trades below Rs 1,415 the corrective wave is likely to continue.

A close below Rs.1,451 could take the stock to levels of Rs.1,350-1,315. On the upside, a close above Rs. 1,415 could trigger a pullback move and take the stock towards Rs. 1,440-1,460.

ITK: Buy
The stock is up over 25 percent so far this quarter. On Thursday, ITC posted a fresh 52-week high of Rs 348.75 on the daily and weekly charts.

The stock has formed a promising formation to continue the uptrend and also formed a long bullish candle that is broadly positive.

Currently the stock is holding higher highs and higher lows, trading comfortably above the 10-day SMA (simple moving average) or Rs 335.

As long as the stock is above Rs 335 the uptrend wave is likely to continue. A close above Rs 335 could take the stock towards Rs 355-360. Traders may prefer to exit long positions at a close below Rs 335.

IOC: Watch out for 20-DMA
The stock is constantly under selling pressure at higher levels on the daily and weekly charts. After a pullback rally from Rs 70 to Rs 73.75, it faced resistance near Rs 74 and corrected sharply.

The scrip has corrected over 5 percent so far in September and also formed a bearish candle that is broadly negative.

For short-term traders, a close below the 20-day SMA (simple moving average) or Rs 71 indicates that the corrective formation is likely to continue.

A close below Rs 71 could reach Rs 65-63. On the upside, Rs 71 or the 20-day SMA would be an immediate hurdle. Furthermore, a small pullback rally up to Rs 73 is possible.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times.) Big Movers on D-St: What should investors do with ITC, IOC and Infosys?

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