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

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

Sectorally, buying was seen in FMCG, consumer durables, auto and utilities, while selling pressure was seen in banks, the public sector, and the energy space.

Stocks that were in focus included names like

, which rose more than 1 per cent to hit a fresh 52-week high, , which hit a 52-week low, and , that also fell about 1 per cent to hit a fresh 52-week low.

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

Infosys: Avoid
The stock has corrected by nearly 8 per cent so far in September. On daily and weekly charts, it is consistently forming lower top formations.

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

A close below Rs 1,451 could take the stock towards Rs 1,350-1315 levels. On the flip side, a close above Rs 1,415 could trigger a pullback move, taking the stock towards Rs 1,440-1,460.

ITC: Buy
The stock has rallied by over 25 per cent so far in this quarter. On Thursday, ITC registered a fresh 52-week high of Rs 348.75 on the daily and weekly charts.

The stock has formed a promising uptrend continuation formation and also formed a long bullish candle, which is broadly positive.

Currently, the stock is holding higher high and higher low formation and comfortably trades 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 from trading long positions on a close below Rs 335.

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

The scrip has corrected by over 5 per cent so far in September and has also formed a bearish candle, which is broadly negative.

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

A close below Rs 71 could hit Rs 65-63 levels. On the flip side, Rs 71 or the 20-Day SMA would be an immediate hurdle. Above the same, a minor pullback rally is possible till Rs 73 levels.

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