The stocks that were in focus included names like Macrotech Developers, which rose 3.64%, HDFC Bank, which gained 0.2%, and Adani Green, whose shares jumped 7% on Monday.
Here’s what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Macrotech Developers
The price of LODHA has dropped after reaching a high of around 1650 due to profit-taking. This resulted in a nearly 30% decrease, and the price is now struggling to stay above the 50 and 100-day moving averages, which are now acting as resistance.
The immediate support lies at the 200-day moving average near 1200, and it’s important for the price to remain above this level to reduce selling pressure.
It’s advisable to avoid buying the stock at its current levels and wait for additional technical confirmation before considering a new entry point.
HDFC Bank
Based on the pattern analysis on the weekly timeframe, it appears that HDFC Bank’s price action is currently exhibiting a volatility contraction pattern.
Such a pattern typically indicates the involvement of savvy investors, as it reflects a continuous absorption of available supply. Additionally, the RSI levels across various timeframes are comfortably above their respective medians, without displaying any divergence from the price, suggesting a strong momentum in price movement.
Considering the potential signs of bullish strength in the private banking index, we suggest purchasing HDFC Bank with a target price of 1800 and maintaining a stop loss at 1622.
Adani Green
Adani Green’s share price has been trading within a 25% range in a multi-month sideways trend. The 50-day moving average is catching up with the price action, providing strong immediate support and a favorable risk-to-reward opportunity.
The company’s earnings per share (EPS) strength and buyers’ demand are also showing significant improvement. We recommend purchasing the stock with a target price of 2175 and maintaining a protective stop at 1833.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
