Big Moves on D-St: What Should Investors Do With ITC, IOC and Infosys?

Indian markets closed in the red for a second straight day on Thursday, following signs of global weakness. S&P BSE Sensex fell more than 300 points, while Nifty50 managed to hold 17,600 levels.

On the industry front, buying pressure is seen in FMCG, consumer durables, autos and utilities, while selling pressure is seen in banks, public sector and energy space.

Notable stocks include names like

rose more than 1% to hit a 52-week high, hit a 52-week low, and also fell about 1% to hit a 52-week low.

Here’s what Amol Athawale, Vice President – Technical Research, Kotak Securities, recommends investors do with these stocks as the market continues to trade today:

Infosys: Avoid
As of now, the stock has corrected nearly 8% in September. On the daily and weekly charts, it is consistently forming lower top shapes.

The short-term texture of the stock is weak but also oversold. As long as Infosys is trading below Rs 1,415, the correction is likely to continue.

A close below Rs 1,451 could lead the stock towards Rs 1,350-1315. On the other hand, a close above Rs 1,415 could trigger a turn around, taking the stock towards Rs 1,440-1,460.

ITC: Buy
Shares are up more than 25% so far this quarter. On Thursday, ITC registered a 52-week high of Rs 348.75 on the daily and weekly charts.

The stock formed a promising uptrend continuation formation and also formed a long, generally positive bullish candle.

Currently, the stock is holding forming higher and higher lows and is comfortably trading 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 bring the stock to Rs 355-360. Traders may prefer to exit long positions on a close below Rs 335.

IOC: Watch out for 20-DMA
On the daily and weekly charts, the stock is constantly facing selling pressure at higher levels. After a rally from Rs 70 to Rs 73.75, it faced resistance near Rs 74 and a sharp correction.

The script has corrected more than 5% so far in September and has also formed a bearish candle, which is generally negative.

For the short-term traders, a close below the 20-day SMA (Simple Moving Average) or Rs 71 suggests a correction formation is likely to continue.

A close below Rs 71 could reach Rs 65-63. On the downside, Rs 71 or 20-day SMA would be an immediate hurdle. Above the same, a minor rally is possible until Rs 73.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)

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