Big Movers on D-St: Siemens & Shree Cements hit 52-week highs, what should investors do?

The Indian market closed lower for the third consecutive day on Tuesday tracking muted global cues. The S&P BSE Sensex and Nifty50 closed flat but with a negative bias.

Sectorally, buying was seen in power, utilities, capital goods, and industrials while selling was seen in realty, IT, oil & gas and telecom stocks.

Stocks that hit a fresh 52-week high on Tuesday include Siemens which was up over 3% and Shree Cements closed flat after hitting a fresh 52-week high on Tuesday.


Here's what Mahesh Prakot, Research Analyst at Bonanza Portfolio recommends investors should do with these stocks when the market resumes trading today:

Siemens: Buy
On a weekly timeframe, the price has been rising continuously with higher highs and higher lows formation. In addition, the price has been also trading above the 20-days exponential moving averages from the last few weeks indicating a strong bullish trend.

Recently, the price has given a breakout of the ascending triangle pattern confirming the continuation of the bullish trend.

At the same time, the indicator MACD also suggested a positive crossover with rising histograms and the daily RSI traded above 60 levels which indicates bullish strength.

Hence, based on the above-mentioned technical structure, one can initiate a long position in Siemens at the CMP 3294.20, or a fall in the price till Rs 3,215 levels can be used as a buying opportunity for the upside target of Rs 3,610.

However, the bullish view will be negated if Siemens closes below the support level of Rs 3,050.

Shree Cement: Buy
After a long bullish trend, the price has witnessed a healthy correction on the weekly chart. Recently, Shree Cement has given a breakout of the inverted head & shoulder pattern which indicates the price will continue a bullish trend.

In addition, the price has been trading above 20-days exponential moving averages indicating bullish strength. At the same time, the indicator Stochastic RSI also suggested a positive crossover which adds more strength.

The daily RSI is trading at the 63 mark so, based on the above-mentioned technical structure, one can initiate a long position in Shree Cement at the CMP Rs 26,530, or a fall in the price till Rs 26,200 levels can be used as a buying opportunity for the upside target of Rs 29,250.

However, the bullish view will be negated if Shree Cement closes below the support level of Rs 24,700.

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