Big movers on D-Street: What should investors do with IDBI Bank, Heritage Foods and KEC International?
On Monday, the benchmark indices Sensex and Nifty closed lower after reaching record high levels earlier in the session, with blue-chip IT stocks experiencing selling pressure.
Benchmark indices Sensex and Nifty ended lower on Monday after hitting their all-time high levels in early trade amid selling in blue-chip IT stocks.Stocks that were in focus include names like , which rose 1.51%, , which gained 5.26%, and , whose shares rallied 5.29% on Monday.
Here's what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
IDBI Bank
The pattern analysis on the daily timeframe shows that the price trades laterally within a channel pattern. The crossover of shorter-term moving averages mildly shows a negative bias, while the price strength compared to the 50 index still improves. We recommend avoiding making a fresh, long entry at the current market price ahead of the bullish breakout confirmation.
Heritage Foods
The price action has seen a parabolic rise after surging nearly 105% in the last 11 trading sessions. With this, the price action is now trading at a distance of 63% away from the mean and has formed a potential hanging man candle pattern.
Their occurrence near the high point has the potential to halt the ongoing trend. The RSI is trading in the extreme overbought zone, and hence, the price momentum is anticipated to cool. We thus recommend avoiding buying the stock at the current market price.
KEC International
Despite a gap-up opening in the previous trading session, the price action closed on an indecision note while trading in a potential double-bottom pattern.
KEC International shows improved EPS strength and buyers’ demand; however, the price strength compared to the 50 index remains relatively weak. We thus recommend avoiding the stock at the current market price.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
