Big Movers on D-Street: What should investors do with Varun Beverages, Gland Pharma & Kalyan Jewellers?

Equity benchmark indices closed higher on Wednesday, helped by fag-end buying in index majors Reliance Industries, ITC and M&M. BSE Sensex climbed 149 points to settle at 65,995, while Nifty gained 61 points to end at 19,632.

Stocks that were in focus include names like Varun Beverages, which rose 0.34%, Gland Pharma, which gained 3.04%, and Kalyan Jewellers, whose shares jumped 2.73% on Wednesday.

Here's what Riches Vanara, Technical And Derivatives Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today:


Varun Beverages - Buy
On the daily time frame, the stock is trading in a symmetrical triangle pattern with a bullish bias as the stock is making higher lows.

The relative strength indicator in comparison to Nifty50 has shown early signs of up move by breaking out of its downsloping trend coming from the previous peak.

The same pattern and breakout are seen in the 14-period RSI which confirms the momentum in the stock. We recommend buying at current levels and on dips towards 810 for targets of 845 and 870 with a stop loss at 790.

Gland Pharma - Buy on dips
The stock has run up well in the last two days with a back-to-back gap-up opening on the daily chart. The trend analysis on higher time frames suggests the upward momentum is still intact.

However, momentum indicators are in an overbought zone but Fibonacci retracement taken from the previous peak to the latest low gives a different picture and bullish bias.

Hence we recommend to buy on dips towards 1650 and 1620 for targets of 1740 and 1820 with a stop loss at 1560.

Kalyan Jewellers - Buy
The stock has broken out of a bullish pole and flag pattern on the daily chart and it suggests the continuation of the up trend. The momentum indicator MACD and 14-period RSI compliments the price action.

Short-term moving average i.e EMA 10 has been a great support area for stock price on every intermediate decline during the previous up move.

We recommend buying at current levels and on dips towards 176 for price targets of 188 and 196 with a stop loss at 170.

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