Buzzing stocks of the day: Paytm, Monte Carlo can rally up to 20%

Shares of HDFC Bank seem placed in the accumulation zone, while HDFC needs to hold on to key moving averages. Charts also indicate a wait and watch approach for LIC of India.

The key benchmark indices, BSE Sensex and Nifty, were ruling higher for the first time in five days on Friday on the back of selective buying.
 

Among prominent sectoral movers, the Nifty Consumer Durable index was up over 1 per cent, followed by the Nifty Auto, which also surged close to a per cent.

Among individual stocks, there were several stocks that were in the limelight. 

Here's an outlook on select buzzing stocks of the day: 

One 97 Communications Ltd (PAYTM)

Outlook: Upside of 15% once aggressive volume builds up

The broader outlook for Paytm stock shows a "Double Bottom" breakout on the weekly chart. What is missing in the stock is support of robust volumes. The price action needs to see aggressive build-up of volumes over Rs 700 to see a massive rally ahead. Supports for the stock exist at Rs 675 and Rs 650, and the positive bias could see Rs 820 level, which is its next major hurdle. CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK)

Outlook: Accumulation may deliver better gains 

Shares of HDFC Bank have a strong breakout support in the range of Rs 1,270 –Rs 1,250 levels, which witnessed a robust rally post November, 2020. Thus, as long as this range is defended, bears may not have an upper hand and market players may consider an accumulative approach at the counter. On the higher side, the counter requires to conquer Rs 1,450 mark to aboard a new trend. CLICK HERE FOR THE CHART

Housing Development Finance Corporation Ltd (HDFC)

Outlook: Requires to honour significant averages

The 100-day moving average (DMA) has become a crucial aspect for HDFC. Unless a decisive rally emerges over Rs 2,221-level, its 100-DMA, the bullish bias may not hold much of a ground. Moreover, a breach of 50-DMA at Rs 2,185 would mean more downside ahead. The Moving Average Convergence Divergence (MACD) shows a negative crossover and if the indicator falls beneath the zero line, the momentum could shift in favour of the bears. CLICK HERE FOR THE CHART

Monte Carlo Fashions Ltd (MONTECARLO)

Likely target: Rs 950

Upside potential: 20%

The stock is up 21 per cent on a monthly basis and continues to attract volumes on every up move. The trend remains upward and a rally could see Rs 950 level over the short-to-medium term perspective. The support for the stock can be expected at Rs 760 and Rs 720 levels. CLICK HERE FOR THE CHART

Life Insurance Corporation of India (LICI)

Outlook: Wait and Watch 

The support for the Life Insurance Corporation of India stock exists at Rs 680 and if that breaks, the counter could resume the downward rally. On the upper side, simultaneous obstacles halt the stock from rallying firmly. From now on, the outlook remains under watch and every significant move must be monitored to gauge the underlying tone. CLICK HERE FOR THE CHART