The S&P BSE Sensex fell more than 800 points on Friday while the Nifty 50 closed below 19,800 points.
By sector, there were gains in industrials and infrastructure stocks, while there were losses in IT, consumer durables and metals stocks.
Stocks to watch included Infosys, which fell more than 8%, Reliance Industries (RIL), which fell more than 2% ahead of earnings, and ICICI Bank, which closed on a positive bias while flat ahead of Friday’s earnings.
We’ve put together a list of three stocks that either hit new 52-week highs or broke out in volume or price.
We spoke to one trader about how to look at these stocks from an educational perspective in the upcoming trading days.
Analyst: Hariprasad Kizhakkethara, SEBI Registered RA (INH200009351), Director of Livelong Wealth.ICICI Bank
The stock has continued its bullish momentum since mid-June, and the four-hour timeframe allows us to identify suitable positions with bullish spreads well above INR 1,002 and stop losses below INR 985, the old resistance that later turned to new support.
The target is 1,035 rupees, which can be thought of as a monthly swing trade.
RIL shares fell 3% after the downgrade by global investment bank Macquarie. Once the RIL breaks out of the Rs 2,680 level, we are looking for a long-term opportunity after the price action and bullish confluence near the Rs 2,330 level.
At this price range, we will continue to hold existing positions and do not consider creating new positions unless the above levels are resolved.
Stocks have a good long-side opportunity after the price correction seen on Friday amid disappointing first-quarter results.
Looking at the levels, 1,360 rupees was a support level tested many times in the past and later acted as a new resistance level on the daily timeframe.
Given this significant adjustment, Infosys recommends a position long above INR 1,360, a stop loss below INR 1,302, targets at INR 1,440 (Target 1) and INR 1,605 (Target 2).
(Disclaimer: Professional recommendations, suggestions, views and opinions are those of the experts and do not represent the views of The Economic Times)