The Indian markets edged lower in the opening trade on Monday. Earlier, domestic equity benchmarks Nifty50 and the S&P BSE Sensex had settled with more than half per cent gains on Friday.  

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Snapping three-day negative closing, Indian markets ended positive on Friday as the Reserve Bank of India kept the policy rates unchanged in its first MPC meet of the new Financial Year (FY 2022-23). Benchmarks Nifty50 edged 0.82% higher as the 50-share blue chip index settled near 17,800, while the 30-share Sensex added over 400 points to end higher by 0.7%.  

India Volatility Index (VIX) closed below 18-mark as Nifty midcap and small cap indices gained 0.98% and 0.39% respectively on the last day of the previous week.  

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Barring IT, which closed flat with negative bias, all sectors gave a positive closing. Nifty FMCG and Metal rose the maximum with over 2% gains. Oil & gas and consumer durables were other notable performers with gains of 1-1.6% gains. 

Among stock that were in focus included Bharat Dynamics Limited which hit a fresh 52-week high and RBL Bank that declined nearly 6% in the closing trade on Friday.  

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd recommends recommend investors should do with BDL and RBL Bank Shares. 

Bharat Dynamics Limited (BDL):  

On April 8th the stock made a fresh all-time high of RS 739.45.  In this month so far, it rallied over 30 percent. Last Friday, the stock opened with a strong note and rallied over 15 percent. A promising price volume intraday rally supports further uptrend from the current levels. In addition, on daily and weekly charts, the stock is holding uptrend continuation formation which is broadly positive for Bharat Dynamics Ltd. However, on short term time frame, momentum indicators indicate stock is in the overbought zone and a high chance of profit booking is not ruled out if it closes below 670. For the next few trading sessions, Rs670 would be the trend decider level for the bulls, sustaining above the same, we could expect continuation of uptrend up to 750-785 On the flip side, dismissal of 670 could possibly trigger quick short-term correction till 650-625.   

RBL Bank:  

From last couple of months, the stock is trading within the range of 120 to 145. Last Friday, despite strong market momentum, the stock corrected sharply by over 6 percent. It is consistently facing selling pressure at a higher level. We are of the view that, as long as RBL Bank Ltd is trading below Rs 20 and 50 day SMA the correction wave is likely to continue. Below the same, it could touch the level of 120-115. On the flip side, fresh rally possible only after 50-day SMA or 140 range breakouts. Above which, it will move up to 150-155. 

(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)