After opening flat, the Indian market has been trading higher by more than half per cent on Monday. Benchmark Nifty50 was trading near 17,650 and the Sensex was seen trading higher by almost 400 points. The rally was aided by broader market indices as Nifty Midcap gained around half per cent while the small cap index almost rose one per cent in early trade on Monday. All sectoral indices swung into green too with Nifty Metal and PSU Bank leading the indices with 1-1.5% gains.  

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Earlier, certain stocks came in focus on Friday. These stocks were HFCL, Zomato and EI Hotel. Share of HFCL was seen trading higher by almost four per cent to Rs 79.35 per share in BSE intraday trade on Monday. Zomato gained over one per cent to Rs 60.40, while EIH declined nearly two per cent to RS 184.85 a share on the BSE 

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

ZOMATO:  

After a short-term correction eventually, the stock took the support near 40 and bounced back sharply.  Post reversal, the stock rallied over 50 per cent (rallied from 41 to 65.  The stock has formed a strong reversal formation but the medium-term structure of the chart is still on the weak side. For the bulls, 50-day SMA (Simple Moving Average) or 55 would be the important support level. If the stock manages to trade above the same, we could expect continuation of uptrend rally till 70-75. On the flip side, below 55 it could slip to 53-50.   

EIHOTEL:  

In this quarter so far, the stock rallied over 50 percent. Last Friday, the stock hit 20 percent upper circuit, it also registered a fresh 52 week high of 191.50. on daily and weekly charts, the stock has formed promising price volume breakout formation and it also formed long bullish candle which is broadly positive.  We are of the view that the short-term texture of the stock is on the positive side, but due to the temporary overbought situation, we could see range-bound activity in the near future.  Hence, buying on dips and sell on rallies would be the ideal strategy for the short-term traders. 180 and 173 would be the key support zone. As long as the stock is trading above the same, the uptrend wave is likely to continue. Above which, it could move up to 205-220. On the flip side, below 173 uptrends would be vulnerable.   

HFCL:  

On daily and weekly charts, the stock consistently forming higher high and higher low formation. After a promising uptrend rally currently, the stock is hovering near 200-day SMA (Simple Moving Average). The short-term formation is strong and the texture of the chart suggesting an uptrend wave is likely to continue in the near future. The 200-day SMA or 72-70 would be the strong support zone for the stock. Above which, it could move up to 85-88. On the flip side, below 70, traders may prefer to exit out from trading long positions. 

(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.)