Trade Spotlight | What should investors do with Maruti Suzuki, Zee Entertainment, Axis Bank, Bharat Dynamics?

Trade Spotlight

Indian equities settled higher on January 25, snapping a five-day losing streak, ahead of expiry of January futures & options contracts and interest rate decision by the US Federal Reserve.

The BSE Sensex added more than 360 points to close above 57,850 levels, while the Nifty50 rallied more than 120 points to close above 17,270 levels, backed by Banks, Auto, FMCG, Metals and Pharma stocks.

The broader markets also participated in the bull run with the Nifty Midcap 100 index and Smallcap 100 indexes rising 1 percent each.

Maruti Suzuki, closing 6.83 percent higher at Rs 8,602.60 apiece, was the top Nifty gainer, followed by Axis Bank, which settled 6.76 percent higher at Rs 752.20 per share.

Zee Entertainment Enterprises, surging 7.72 percent to close at Rs 288.80 apiece, was the top gainer in the futures & options segment. On the other hand, Bharat Dynamics rose 4.16 percent to settle at record closing high of Rs 465.35.

Here’s what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:

This counter seems to have registered multiple breakouts apart from a minor consolidation breakout on daily chart. However, on weekly charts this counter is moving in a well-defined 30 week channel and hence its initial target can be the upper boundary of the said channel whose value is placed around Rs 8,700 levels.

Therefore, for further upsides it needs a breakout above the said channel and in that scenario eventually life time highs present around Rs 9,990 can be expected.

For time being, fresh buying should be considered on dips but with a stop-loss placed below Rs 7,887 on closing basis and look for near term target of Rs 9,000 levels.

This counter appears to have taken support as it entered into the wide bullish gap zone of Rs 281 – Rs 261 levels registered on September 22, 2021. Considering the strong bounce witnessed in last trading session a tradable bounce can be expected from the current levels.

Therefore, sustaining above Rs 262 levels a higher target of Rs 330 can be expected. Dips can be considered as an opportunity to create fresh longs with a stop below Rs 260.

Strong recovery of this counter by erasing 8-day old corrective structure in just a single session is hinting not only the end of correction but also suggesting this counter might have embarked on a fresh leg of upswing.

Therefore, any dip towards its 200-day moving average (Rs 718) can be an opportunity to create fresh long positions and sustaining above Rs 708 levels a higher target of Rs 820 can be expected. Stop-loss suggested for the trade is a close below Rs 718 levels.

This counter is displaying a better relative strength, when compared to the indices, as it remained unruffled even in the midst last 5-day carnage of the broader markets.

Moreover, for last 64 weeks this counter is moving in a well-defined ascending channel with multiple touch points.

Hence, sustaining above Rs 435 levels it can head to test its upper boundary of the said channel whose value is placed around Rs 497 levels. For time being one can buy the slight dip with a stop-loss below Rs 435 and look for a target of Rs 495.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.