Big movers on D-Street: What should investors do with Raymond, JK Paper and MapmyIndia?
Benchmark Sensex and Nifty hit record highs fueled by global market gains. Emami shows bullish breakout potential while CDSL faces profit booking risk. Medanta's surge warns of a distribution phase, urging caution for new buyers until confirmation near 1388 levels.
Benchmark Sensex rose by 443 points to close at a new record high while Nifty settled above the 24,100 mark on Monday on buying in banking and IT shares in line with gains in Asian and European markets.Stocks that were in focus include names like , which rose 5.03%, , which gained 1.7%, and Medanta, whose shares declined 2.70% on Tuesday.
Here's what Kushal Gandhi, Technical Analyst, StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Emami
The price of Emami Ltd saw a significant increase of 81% in 10 weeks, reaching a record high of 762 levels, indicating a bullish breakout after a prolonged period of over 9 years.
In the last 14 weeks, there has been a sharp surge, leading to the formation of a flag pattern, which suggests a potential continuation of the trend. The stock demonstrates improving EPS strength, price strength, and increased buyer demand.
Our recommendation is to buy EMAMI with a target price of 871 and to set a protective stop at 683.
CDSL
The price of CDSL surged sharply on Friday after opening with a gap-up, resulting in a breakout from a sideways trading range. The stock rose nearly 19% intraday and trades over 15% above its mean level, increasing the likelihood of profit booking.
The overall trend remains intact; however, considering the unfavourable risk-to-reward ratio at the current market price, we recommend refraining from initiating new long positions in the stock.
Nonetheless, committed investors can continue to hold their positions with a target of 2790 while trailing their stop losses at 2240.
Medanta
After experiencing a remarkable 287% increase since its listing, the price action has entered a profit-taking phase and is now expected to be in a distribution phase.
The current price structure displays lower high formation, signalling a need for more potential for the price action to bottom out.
As such, we recommend abstaining from purchasing the stock and instead monitoring the situation, looking for a bullish confirmation above the 1388 levels on a closing basis before considering any further action.
(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
