Sectorally, buying was seen in energy, oil & gas, utilities, and power stocks while healthcare, capital goods, FMCG and telecom stocks saw some selling pressure.
Stocks that were in focus on Tuesday include names like Adani Power which was up over 12% to hit a fresh record high, Multi Commodity Exchange which rose nearly 7% to hit a fresh all-time high and The New India Assurance Company which closed with gains of nearly 8% to hit a fresh 52-week high.
We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Madhu Bansal, Research Head, The Finberg
Adani Power
Adani Power is the largest private thermal producer in the country and one of the crucial parts of the diversified Adani Group. The stock has gained over 40% in the past month with a significant increase in the last week’s time frame (especially today).
On Friday, it garnered over 230% in volumes with a 4.5% increase in prices, which signifies huge momentum in the stock.There was also a 270% increase in the volumes (1.12cr vis-a-vis 30 lakhs on Friday) on Tuesday with a whopping 13% increase in price.
Technically speaking, the stock is trading above 5,10 & 50-day EMAs as well as SMAs. It breached its long-term resistance level on Tuesday at 407, which can lead to major upside from here.
Another interesting aspect of this chart is the Fibonacci retracement levels. Historically observed, it rises to 1.618 Fibonacci points before taking a pullback, which according to the recent pattern is 515 price points.
There is still great potential left in this stock if bought at the current support levels of Rs 410-420 with a potential to reach Rs 490-510 levels and stop loss of Rs 375.
MCX
MCX or Multi Commodity Exchange of India is the country’s first exchange to facilitate commodity derivatives exchange. The stock gained over 7% on Tuesday, with 78% increase in their deliverable quantity.
However, this number is mutilated by the mere 17% of deliverable quantity to the traded quantity, which means slowing interest in the stock at present.
Diving into the derivatives segment, futures OI has not much increased with increasing prices and options PCR is also showing stability in the stock.
Technically speaking, RSI is 79 which is considered overbought and has seen some serious pullbacks in the past. Another factor is the RSI divergence that has been recently seen in the charts again signaling a pullback.
The Money Flow Index is also above 70, which again is considered as overbought. The investors who already have a position in the stock can consider booking profit while those interested in investing their money might wait for a pullback to come around 2850.
ETMarkets.comThe New India Assurance
NIACL or New India Assurance Company Ltd is the country’s largest general insurance company, which is majorly owned by the government which means a healthy dividend payout.
On Friday, the stock hugely gained over 19% in a single day with a 729% (48 lakh) increase in deliverable quantity showcasing a huge interest among investors.
Even on Tuesday, there has been a 23% increase in the deliverable quantity and 8% positive price change as compared to Monday.
The chart shows a long-overdue breakout from the falling trendline of over 30 months with a good number of volumes.
Even with such positive technical points, we can’t ignore the highly overbought RSI as well as stochastic oscillators. For the existing investors, the stock might gain for a few more days before taking a pullback.
For the new investors, it seems to have missed the bus for this momentum and may wait for the pullback to happen. The immediate target for the existing investors is Rs 245-270 with a stop loss of Rs 200.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
