ITC Stock: Big movers on D-ST: What should investors do with Jamna Auto, IDFC First Bank and ITC?

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Supported by positive global cues, the Indian market on Monday broke its three-day losing streak. The S&P BSE Sensex rose over 300 points, while the Nifty 50 closed above the 15,800 level.

Sector wise, buying was witnessed in FMCG, banks, capital goods and consumer durables, while selling pressure was witnessed in metal, energy, oil & gas and IT stocks.

The stocks that were in focus included names like

Which rose over 4 percent, rose over 5 percent, and hit a 52-week high and closed with a gain of nearly 3 percent.



Jatin Gohil, Technical & Derivatives Research Analyst, Securities, recommends what investors should do with these stocks when the market starts trading today:


Jamna Auto Industries: SAIL
Continuing its earlier daily rising trend, the stock registered a fresh high of Rs 135.50 but later reversed from the higher level.

On the daily chart, the stock formed a shooting star pattern. A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a short real body near the low of the day.

Its key technical indicators are testing the overbought zone and a turnaround is likely. Hence profit booking cannot be ruled out. This could pull the stock towards its medium term and long term moving averages, which are placed at Rs 111 and Rs 104 respectively.

Fresh investments are not advised at this time as the risk-reward is not favorable. If the positive momentum continues, the stock may face hurdles near the psychological level of Rs 150.

IDFC First Bank: Buy
In the last month, the stock tested its 78.2% Fibonacci retracement level pre-up-move (Rs 17.65-69.30), which was placed at Rs 29 and saw a slight correction later.

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On Monday, the stock saw a breakout from a narrow range consolidation and touched a 3-week high of Rs 34.50. A spike in volumes and an increase in future open interest (OI) indicate that major market participants are in favor of the bulls.

Its key technical indicators are charting positive on the medium term as well as short term time frame charts.

This may move the stock towards Rs 37-38 initially and Rs 41 later. In case of any downside, the stock will get support at around Rs 30.

ITC: Sell
On 27 June 2022, the stock saw a breakout from a downward sloping trend line, and later, extending gains, it reached a 3-year high of Rs 293.

This sharp rise in the stock pushed its key technical indicators into the overbought zone on the short term timeframe charts.

In the past, the stock either remained sideways or witnessed a gradual rise after its key technical indicators hit the overbought zone. Fresh investments are not advised at this time, as the risk-reward is not favorable.

In terms of profit-booking, the stock will find support around Rs 275. However, a gradual rise may take the stock towards the Rs 297-300 zone.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)

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