Big Movers on D-St: What should investors do with DLF, United Spirits and AU Small Finance Bank?

The Indian market remained shut on Friday on account of a public holiday.

Sectorally, buying was seen in banks, realty, auto, and consumer durables while selling was seen in IT, capital goods, oil & gas, and healthcare.

Stocks that were in focus include names like DLF which was up nearly 2%, United Spirits which closed flat and AU Small Finance Bank which rose more than 17% on Thursday.

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

DLF: Sell on rally
The stock has rallied over 15% so far this month. The stock successfully cleared the 385-breakout level and post-breakout, it intensified positive momentum.

On the daily and weekly charts, the stock has formed a promising breakout continuation formation. The texture of the chart suggests an uptrend continuation formation which is likely to continue in the near future.

However, momentum indicators indicate temporary overbought conditions, and due to this, we could see some profit booking near resistance levels.

We are of the view that buying on correction and selling on rallies would be the ideal strategy for traders.

For the bulls, 400-395 would be the key support levels while 430-440 could act as a crucial resistance zone. On the flip side, below 390 would be vulnerable.

United Spirits: Buy

After a short-term correction, the stock took support near 735 and reversed sharply. Post reversal, the stock is witnessing positive consolidation formation near the 20 and 50-Day SMA (Simple Moving Average) levels.

The short-term texture of the chart suggests a strong possibility of a fresh uptrend rally from the current levels. For the positional traders, 735 would be the immediate support level.

If the stock succeeds in trading above the same, then it could move up to 775 and further upside may also continue which could lift the stock to 785.

AU Small Finance Bank: Exit from Longs
On Thursday, the stock opened with a gap up and rallied over 15%. After a strong opening, the stock held positive momentum throughout the day.

A promising long bullish candle on the daily and weekly charts and incremental volume activity support the uptrend.

The short-term formation of the stock is bullish but due to temporary overbought conditions, we could see range-bound activity in the near future.

For the breakout traders, 655 would be the key support zone while 695 -700 would be the immediate resistance zone.

On the other side, below 655 traders may prefer to exit from the trading long positions.

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