Indian markets closed in the red on Friday for the second consecutive day in a row. The S&P BSE Sensex fell over 70 points while the Nifty50 managed to hold above 17100 levels.

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Sectorally, buying was seen in healthcare, IT, telecom, realty, and oil & gas stocks while some selling pressure was visible in banks, auto, and finance stocks.

Stocks that were in focus include JSW Holdings closed with gains of over 11 per cent, ONGC closed with gains of over 2 per cent and LIC Housing Finance rose nearly 11 per cent on Friday.
 

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Here's what Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

JSW Holdings: Buy

The stock has rallied over 10% on 28th Jan 2022. On Friday, the stock opened with a gap and quickly surpassed its resistance of 4250 with strong volume activity.

However, despite the strong uptrend rally, the stock failed to close above 200-Day SMA. We are of the view that the stock is witnessing non-directional activity and missing clear direction.

Perhaps, traders are still waiting for the breakout confirmation. For the bulls, 4575 or 200-Day SMA would be the key level to watch out.

If the stock managed to close above the same, then breakout continuation formation will continue till 4800. On the flip side, if the stock trades below 4200, the selling pressure may increase further which could take the stock towards 4050-3900.

ONGC: Hold

Post remarkable up move from the levels of 130 to 170, the stock is hovering within the range of 165 to 172 price range. On Friday, the stock opened on a strong note and cleared the resistance of 172 but failed to sustain above the same.

We are of the view that, the texture of the chart is strong, but a fresh breakout is possible only after 175. Above which it could rally up to 185. On the flip side, a close below 160 is important support – the uptrend would be vulnerable.

LIC Housing Finance: Buy

On Friday, the stock opened with a gap and rallied over 10 percent. On the daily charts, it has formed promising reversal formation.

A strong price volume intraday rally indicates a further uptrend from current levels. In addition, after a long time, LIC Housing Finance Ltd. has succeeded to close above 20 and 50-Day SMA which is broadly positive.

For the trend following traders, 370 or 50-Day SMA would be the key level to watch out. Above which it could move up to 400-410.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)