Big Movers on D-St: What should investors do with Jubilant Pharmova, Hindalco and Samvardhana Motherson?

Sectorally, buying was seen in utilities, power, oil & gas, and realty stocks while some selling was seen in metals, IT, and telecom stocks.

Stocks that were in focus include names like Jubilant Pharmova which was down nearly 5%, Hindalco Industries fell more than 5% and Samvardhana Motherson International dropped more than 10% 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:

Jubilant Pharmova: Buy
On a monthly timeframe, the stock had been in a persistent downward trend. Therefore, it is currently in oversold territory and available near its demand area.

The texture of the chart formation and technical indicators such as RSI is indicating at a likely reversal from the current levels, which could lead to a new leg of the up move from its demand zone.

In the near term, 268 would be the immediate support zone for the stock. Above the same, the stock may witness a pullback rally towards 299.

Hindalco Industries: Watch out for Rs 370
The stock is into a sloping channel for the past few weeks, which resulted in a bearish continuation chart formation.

However, the structure of the chart formation and technical indicator RSI is indicating at a likely reversal from the current levels due to oversold conditions.
For the next few trading session, 370 could be the trend decider level for the bulls.

If it sustains above the same (370), we can expect an uptrend towards 415. On the other hand, a dismissal of 370 could lead to further selling pressure on the stock.

Samvardhana Motherson: Buy
On the weekly scale, the counter was into a rising channel formation with a gradual up move. However, recently it witnessed a sharp decline from the higher levels because of the large block deal.

Nevertheless, a level of 66 might act as an important support for the counter. Unless it is trading below 66, positional traders can retain an optimistic stance and look for a target of 75 in the near term.

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