Big Movers on D-St: What should investors do with Infosys, HDFC Bank and Avenue Supermarts? – Blue Barrows

The Indian markets pared intraday gains on Friday and closed over 1 per cent higher. The S&P BSE Sensex rose nearly 700 points, while the Nifty50 closed just below 17,200.

Sectorally, buying was seen in IT, banks, capital goods, and consumer durables, while selling was visible in power, utilities, oil & gas, and energy space.

Stocks that were in focus included names like

, which was up nearly 4 per cent, , which rose over 3 per cent ahead of September quarter results, while ended flat ahead of Q2 results on Saturday.

Here’s what Pravesh Gour, Senior Technical Analyst,

, recommends investors should do with these stocks when the market resumes trading today:

Infosys: Buy
The counter is bottoming out from the lower levels at around Rs 1,350-1,380 in the longer timeframe. It has been travelling in the long consolidation phase for the last six months. The structure of the counter looks attractive at these levels for investment. Now, it is starting the next leg of a rally where Rs 1,600-1,650 is an immediate resistance level.

A close above the mentioned levels can take the stock towards Rs 1,800+ in the long term. On the downside, Rs 1,300 will act as strong support. The momentum indicator is also positively poised.

HDFC Bank: Buy
The counter witnessed a double bottom formation that shows a change in trend and a momentum reversal from the prior leading price action. The overall structure looks lucrative as it trades above its all-important moving averages.

MACD (Moving average convergence divergence) has been supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.

On the upside, Rs 1,470-1,480 is the neckline and an immediate hurdle. A close above this level can take the stock towards Rs 1,550. On the downside, Rs 1,350 is a strong demand zone at any pullback.

(DMart): Avoid
The counter is forming a bearish head & shoulder pattern on the daily chart, while Rs 4,200 is likely to act as an immediate neckline support for the lower level; below this level, Rs 4,050 will be the next important support level.

On the upper side, a cluster of moving averages around Rs 4,400 will act as strong resistance. A close above this could take the stock towards Rs 4,600, which will be the next upper level for the investor.

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