Breakdown Stocks: How to trade Ircon International, DLF, and RIL after hitting 52-week lows?

The Indian market closed in the red for the sixth consecutive day in a row on Wednesday. The BSE Sensex fell more than 200 points while the Nifty50 closed just above 23,000.

Sectorally, buying was seen in banks, metal, and capital goods stocks while selling was seen in power, healthcare, oil & gas, IT and energy stocks.

Stocks that hit fresh 52-week low include names like Ircon International fell more than 6%, DLF closed 4% lower and RIL closed 1.5% down on Wednesday.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Priyanka Limaye, CA, CMT

IRCON International: CMP 168.6

This stock had been consolidating in the price band of 230-180 for almost four months. In today’s session, it breached 180 and tested a lower level of 160.

Wednesday’s candle is green with very decent volumes. Now, 180 will be the crucial hurdle, while breaching 160 and sustaining below it could lead to another 15-20% downside. Technical indicators are in sell mode.

DLF: CMP 681

In Wednesday’s session, this stock almost tested the 2024 Lok Sabha election results day low. The 670 level is long-term support.

Sustaining above 670 could lead to a 5-10% up move in the near term, while falling below 670 could result in another 5-7% downside. The RSI is indicating a possible support area.

RIL: CMP 1,217

Drawing a Fibonacci retracement from the COVID low of 393 to the recent high of 1,608, the stock now has very strong technical support around the 1,140-1,150 zone at the 61.8% Fibonacci level. On the upside, 1,350 will be a tough resistance. Technical indicators are in sell mode.

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