The results of election 2014 took the bellwether indices to record highs amid lot of volatility. The stocks that surged were from a diverse sectors. We take a close look at three stocks — Indiabulls Real Estate, Sobha Developers and Sesa Sterlite — from a technical perspective.
Indiabulls Real Estate (₹78.2) skyrocketed almost 19 per cent breaking a key resistance at ₹73. There has been an increase in daily volumes over the past six trading sessions. With ₹70 and ₹73 being an important support zone, the stock can continue hovering above this zone and scale to ₹85 in the short term.
A strong break away from ₹85 will push the stock out of a long-term sideways consolidation phase and take it northwards to ₹100 in the ensuing months.
Sobha Developers (₹426.9) was another realty stock that gained 12 per cent, moving out of a key resistance band between ₹390 and ₹400 that kept the stock in check for more than a month. Continuation of the stock’s current medium-term uptrend can push it northwards to ₹450 and then to ₹472 in the coming weeks. But a fall below ₹400 can pull the stock down to ₹365 or ₹350 levels.
The stock of Sesa Sterlite (₹214.9) moved out of an intermediate-term sideways phase in the band between ₹172 and ₹207. The stock’s current rally from the lower boundary surpassed its 200- and 50-day moving averages early this week.
On Friday, the stock jumped 11 per cent with extraordinary volumes at 8.3 times its two-week average. Moreover, the stock registered a new 52-week high at ₹218.8 levels. This rally could be the initial foundation for a bull run as the stock breaks out of a complex inverse head and shoulder pattern, which is a bullish reversal pattern. The stock can trend to ₹224 and then to ₹245 in the medium- to intermediate-term. Conversely, a decline below ₹207 can pull the stock down to ₹190 or ₹175 levels.