Despite strong September auto sales number amid festive season, launch of 5G services last week and strong closings on Friday, the Indian market has been trading lower amid weak global cues on Monday.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Benchmarks Nifty50 and Sensex were trading lower by around half per cent each as the 50-stock bluechip index traded near 17,000-mark, while the 30-share BSE index declined around 300 points to trade near 57,100.  

Meanwhile, Nifty midcap index traded flat with negative bias and small cap gained 0.20% in the afternoon session.  

Sectorally, Pharma, Heathcare and Oil & Gas indices traded higher by 0.4%-2% on Monday. Meanwhile, IT index too swung into green and trade flat as all other sectoral indices slipped in the red.  

ONGC, Cipla, Bharti Airtel, Divis Laboratories, Coal India, BPCL, NTPC and Sun Pharma gained, while Adani Enterprises, Eicher Motors, Maruti Kotak Bank, ICICI Bank and IndusInd bank declined the most.  

Earlier, certain stocks came in focus on share movement on Friday. These stocks were IGL, Bharti Airtel and Solar Industries. After becoming the first telco to launch 5G services in India, Bharti Airtel share price jumped more than two per cent in BSE intraday trade to hit 52-week high of Rs 815.35 per share on Monday. Shares of IGL dropped around three per cent to Rs 379.45 and Solar Industries gained over two per cent to Rs 4045.30 a share on the BSE. 

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends one should do with these stocks.  

IGL share price trading strategy 

After a strong uptrend rally, the stock is consistently facing selling pressure at higher levels. Double top formation on daily charts and lower top formation on daily charts indicating correction continuation wave likely to continue in the near future. Last Friday, despite strong market conditions, the stock corrected over five percent and it has formed bearish candle. Currently, the stock is trading near 200-day SMA (Simple Moving Average) 393. The texture of the chart suggests selling pressure is likely to increase if the stock succeeds in closing below 200-day SMA. Below the same, it could slip to 375-365. On the flip side, above 410, a minor pullback rally is possible till 420-425.   

BHARTI AIRTEL share price trading strategy

The stock rallied over 4.5 percent on September 30th. On last Friday, after a muted opening, the stock quickly surpassed the short-term resistance of 790 with modest volume activity.  On the short-term time frame stock has formed a promising uptrend continuation formation and also formed a long bullish candle.  The structure of the pattern suggests breakout action will continue in the near term if the stock succeeds in trading above 790 level. For the trend-following traders, 785 would be the key level to watch out for, trading above the same, we can expect uptrend continuation wave up to 820-830. On the flip side, below 790, the uptrends would be vulnerable.   

SOLAR INDUSTRIES share price trading strategy

After a quick short-term correction, the stock took the support near 20-day SMA (Simple Moving Average) or 3450 and bounced back sharply. post reversal, it made a fresh all-time high of 3974.95 and also formed a strong bullish candle which is broadly positive. However, the medium-term texture of the stock is non directional. Perhaps, traders are waiting for either side confirmation. For the bulls, 4000 would be the important breakout level to watch. And if the stock manages to close above the same, we can expect a quick uptrend rally towards 4100-4200. On the flip side, trading below 3800 may increase further weakness up to 3600-3550. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)