Big Movers on D-St: What should investors do with KPIT Technologies, RIL and Bharat Electronics?

Sectorally, the rally was seen in IT, banks, realty, and telecom stocks.

Stocks that were in focus include names like KPIT Technologies which rose more than 3% to hit a fresh 52-week high, Bharat Electronics which was up more than 6%, and Reliance Industries which closed with gains of over 4% on Friday.

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:

KPIT Technologies: Buy| 890 key support
The stock has rallied over 30% so far in this quarter and also registered a fresh all-time high of 946.65. On the daily charts, the stock is comfortably trading above the 20 and 50-Day SMA (Simple Moving Average). It has also formed a higher bottom formation which is largely positive.

The short-term texture of the stock indicates an uptrend formation which is likely to continue in the near future.

For trend-following traders, 890 would be the key support level to watch out for. Above the same, the uptrend wave is likely to continue till 960-985.

On the flip side, below 890, traders may prefer to exit out from the trading long positions.

Reliance Industries: Rs 2290 will act as a support
After a long correction, the stock took support near 2220 and bounced back sharply. On Friday, the stock rallied over 4% and has also formed a long bullish candle on the daily charts.

In addition, after a long time, it succeeds in closing above the 20-Day SMA and a promising price-volume rally is indicating further uptrend from the current levels.

For the swing traders, 2290 or the 20-Day SMA would act as a sacrosanct support zone. Above the same, the stock could move up to 2370-2400. On the flip side, below 2290 uptrend would be vulnerable.

BEL: Buy
Last Friday, the stock opened with a gap-up and rallied over 6%. After a gap opening on the higher side, the stock held positive momentum throughout the day.

A promising price-volume activity near the 20 and 50-Day SMA (Simple Moving Average) and a strong bullish candle on daily and weekly charts support the uptrend.

Technically, 93.50 would act as a key support level for the bulls. Above this, the stock could move up till 100 -105. On the flip side, below 93.50 the selling pressure is likely to accelerate. Below the same, the stock could retest the level of 91-90.

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