Big moves on D-Street: What should investors do with RIL, LIC and Angel One?
Stocks in focus included names like RIL, down 1.49 per cent, LIC, up 4.5 per cent and Angel One, whose stock fell 13.5 per cent on Tuesday.
Viral Chheda, senior technical analyst at SSJ Finance & Securities, recommends how investors should handle these stocks when the market resumes trading today.
RIL – Book Profits
After hitting a low around 2220 in October 2023, the price witnessed a sharp Bull Run on the daily chart, hitting an all-time high of 2793 odd levels. Prices returned nearly 26% from low levels because buyers had full control over the prices.
The stock may face resistance near the 2820-2850 levels and from here it could witness some profit booking to make lows anywhere between 2600-2650. In the long run, you can buy stocks whenever they look good and dip. The price is moving above all three major averages – 20DMA, 50DMA, and 200DMA, which is a good sign that there is room for further upside.
So, you can book some profits from current levels and wait for some dips to buy above about 2620 on the dip of 2500 using SL 2400 as weekly close and see upside to 3200-3600 in next 10-12 months. You can see it.
LIC – Purchase
From May 2023 to November 2023, the stock moved in the range of 590-690 odd level, and after breaking through the consolidation phase, the price showed a sharp upward trend and hit a 52-week high of 900 odd level. Volume increased as the bulls took the price lead. For the first time, the price has surpassed the IPO price and closing near this level means there is room for further upside from here.
The stock may face resistance at its previous all-time high of 912 and, once sold off, could see a near-term rise to 1000-1200. Stocks look good for the long term and you can buy them whenever they drop. The Stochastic Oscillator is also moving in an uptrend and the slight increase in volume indicates further upside from here. So, you can buy at the current level and buy more at the low of 850, with a weekly close of SL 800 and upside potential of 1000. -1200 for the next 10-12 months.
Angel One – Avoid
After making a double bottom near 1450 in July 2023, the price showed a sharp upward trend on the daily chart and touched an all-time high of 3896 odd level. Prices gained nearly 165% from lower levels as buyers gained the upper hand. After delivering high returns, the price moved sideways for several days and this week saw a sharp correction in the relatively high volume price to lows of the 3340 odd level.
You can see more downside here, and if you buy the stock at a lower level, it may be a good idea to book a partial profit. In the long term the stock looks good and you can buy on the dip between 3000-3100. The price is currently moving below the 20-day moving average, which is a negative sign for the bulls. The Stochastic Oscillator is also moving in overbought territory.
So you can avoid buying at current levels and buy on dips from SL 2800, 2950 to 3100 and even lower as of weekly close and see upside to 3800-4200 in next 10-12 months.
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(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
