The domestic stock market made a sharp recovery on Friday as headline indices surged nearly 3 per cent each on Friday. Broader Nifty50 settled 16,200, while the Sensex gained more than 1500 points to end near 54,300.  

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Following benchmarks, Nifty midcap and small cap rose over two percent each as India VIX closed near 23-mark.  

"As Equity Investors brace for higher volatility on the back of the flip-flop in benchmark indices, the fact that markets are never priced to ground realities, the art of capitalising on the disconnect between earnings and stock prices creates pockets of opportunities, said S Ranganathan, Head of Research at LKP securities. 

Sectorally, Nifty Metal, Realty and Media gained more than 4% each, while bank, Auto, Pharma and others too rose significantly as all sectoral indices closed higher on Friday.  

Meanwhile, Godrej Consumer Products, Welspun Corporation and Granules India were in focus on Friday. Godrej CP closed nearly 5% lower, Granules India gained more than 6% and Welspun Corp rose over 17% on Friday. 

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, suggests investors should do with these stocks   

Godrej Consumer Products 

In the last week, the stock corrected over 5 percent. On daily and weekly charts, the stock has formed a double top series formation and post formation it consistently facing selling pressure at higher levels. We are of the view that, as long as it is trading below 20-day SMA or 785 the correction wave is likely to continue. Below which, it could retest the level of 740. A further down side may also continue which could drag the index up to 700. On the flip side, a fresh uptrend rally is possible only after 785 or 20-day SMA level breakout. Above which it could move up to 820-840.   

Granules India: 

After a long correction, the stock took the support near 240 and bounced back sharply. In the last week, the stock rallied over 13 percent. On Friday, it not only cleared the resistance of 20 day SMA but succeed to close above the same which is broadly positive.  On daily and intraday charts, the stock is holding uptrend continuation formation and it also formed a long bullish candle on weekly charts which support further uptrend from the current levels.  For the trend following traders 263 or 20-day SMA would be the key levels to watch out, the overall chart structure suggests if the stock sustained above the same then uptrend continuation texture likely to continue till 280-287. Below 260 uptrends would be vulnerable.  

Welspun Corp: 

In the last week, the stock rallied over 37 percent. On Friday, it successfully cleared the resistance of 225 and hit the fresh 52-week high of 250.65. On daily and weekly charts, it has formed promising price volume breakout formation which indicates further upside from the current levels.  For the trend following traders 224 would be the key levels to watch out, the overall chart structure suggests if the stock sustained above the same then breakout continuation texture is likely to continue up to 270-2780. On the flip side, a close below 220 traders may prefer to exit out from the trading long positons.