Trade Spotlight | What should you do with Metro Brands, Quess Corp, Jubilant Pharmova today?

Jubilant Pharmova surged nearly 12 percent to Rs 352 and formed robust bullish candlestick pattern on the daily charts with large volumes and also there was a formation of Morning Star kind of pattern, which is a bullish reversal pattern.

September 21, 2022 / 06:31 AM IST
 
 
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The market gained 1 percent on September 20, continuing northward journey for second consecutive session driven by buying across sectors. Traders also keenly await the outcome of Federal Reserve policy meeting.

The BSE Sensex climbed 578 points to 59,720, and the Nifty50 jumped nearly 200 points to 17,816 and formed decent bullish candlestick pattern on the daily charts. The decisive close above 17,820, the high point of last Friday's session, can push the index towards 18,000-18,100 levels, experts said.

The broader markets also traded higher and performed in line with benchmarks. The Nifty Midcap 100 and Smallcap 100 indices rose 1.4 percent and 1.1 percent respectively.

Stocks that were in focus on Tuesday included Metro Brands which jumped 8.5 percent to end at record closing high of Rs 884 but it is yet to close above intraday all-time high of Rs 940. The stock has seen a bullish candlestick pattern on the daily charts with large volumes. Also there was an expansion in Bollinger Band with formation of bullish candle.

Quess Corp was up 6 percent at Rs 634 and formed strong bullish candle on the daily charts with significantly higher volumes, while Jubilant Pharmova surged nearly 12 percent to Rs 352 and formed robust bullish candlestick pattern on the daily charts with large volumes and also there was a formation of Morning Star kind of pattern, which is a bullish reversal pattern.

Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:

Metro Brands

After consolidating in a range from April-July 2022, the stock has recently given a breakout and has resumed the positive momentum. Post an upmove towards Rs.940, prices went through a time-wise correction from some days now seems to be again moving higher.

Hence, the chart structure remains positive as prices at also holding above its 20 DEMA (days exponential moving average) support. With limited historical data, it is difficult to determine targets as per technical analysis, but keeping a trailing stop-loss below the support should be a good strategy to ride the trend in the stock.

The immediate supports for the stock are placed around Rs 800 and Rs 765.

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Quess Corp

The stock has seen a price upmove with good volumes in Tuesday's session, but if we look at the recent charts structure, then it seems that trend has not turned positive yet.

Previously during the uptrend, the ‘200-DEMA’ was acting as a support on corrections but now the same average has been acting as a resistance on pullback moves. Also, the previous swing high of Rs 700-720 seems to be stiff hurdle for the stock.

Hence, one should wait for a follow up buying in the stock and look for more confirmations for taking fresh positions. The immediate support for the stock is placed around Rs 595 while resistance is seen around Rs 700-720.

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Jubilant Pharmova

In last one year, prices had seen a sharp correction form the high of Rs 880 to about Rs 300. We witnessed a sharp upmove in Tuesday's session along with good volumes. However, this could just be a pullback move as the momentum readings were in oversold zone and have given a positive crossover.

The trend does not change with one day’s move and hence one should watch out for more price action in the near term.

A Higher Top Higher Bottom structure or a follow up buying with good volumes are required for a change in broader trend.

The immediate support for the stock is placed in the range of Rs 320-300 while resistance will be seen around Rs 380.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
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