EClerx Services, Alok Ind: Trading strategies for buzzing stocks of the day

Nifty 500 and Nifty Mid-cap 100 index have already seen a surge of over 2.50 and 6 per cent respectively, in the current month

The Bulls were in firm control of D-Street on Friday with the Indian benchmarks logging their fresh lifetime highs in intra-day session amid favourable global cues. The momentum also helped individual stocks gain ground with stocks like eClerx Services Limited, Future Retail, and Alok Industries, among others, hitting their respective upper circuit levels.

Shares of eClerx Services, for instance, were locked in 20 per cent upper circuit band at Rs 1,617.35 on the BSE after the company reported healthy March quarter numbers (Q4FY21) with revenues up 19.3 per cent quarter on quarter (QoQ) in constant currency terms and 19.7 per cent QoQ in reported terms. The stock had hit a record high of Rs 1,775, in August 2016. READ MORE

Besides, Future Retail hit 10 per cent upper circuit at Rs 60.05, Alok Industries surged 19 per cent, VRL Logistics 15 per cent, and Deepak Fertilisers 10 per cent.

The momentum in the Indian stock market continues to be bullish, with stocks gaining ground further. In the broader markets, the Nifty 500 and Nifty Mid-cap 100 index have already seen a surge of over 2.50 and 6 per cent, respectively, so far in the current month.

Here's how these stocks look on technical charts:
 
eClerx Services Limited (ECLERX)

Likely target: Rs 1,800 and Rs 2,000

Upside potential: 11% and  23%

On Friday, June 11, the stock was locked in 20 per cent upper circuit, inevitably crossing the resistance range of Rs 1,400 to Rs 1,300 levels. This move has opened doors for further upside towards Rs 1,800 and Rs 2,000 mark, as per the daily chart. The stock has shown optimism even in the overbought category of the Relative Strength Index (RSI) and continues to do so. The immediate support comes at Rs 1,500 levels. CLICK HERE FOR THE CHART

Alok Industries Limited (ALOKINDS)

Likely target: Rs 30 and Rs 33

Upside potential: 8% and 16%

With a firm move today, the stock has managed to fill-up a gap down range of Rs 28.50-27.10 levels with strong volumes, as per the weekly chart. This may result in a breakout towards Rs 30 and Rs 33 levels, which are the next hurdles. The closing basis support stays at Rs 24 levels. CLICK HERE FOR THE CHART

VRL Logistics Limited (VRLLOG)

Likely target: Rs 320

Upside potential: 7%

A firm move above Rs 280 levels indicates a breakout towards the hurdle of Rs 320 levels, as per the daily chart. The overall trend is bullish supported by increased volume activity. The immediate support comes at Rs 288 and Rs 280 levels. CLICK HERE FOR THE CHART
 
Future Retail Limited (FRETAIL)

Likely target: Rs 65 and Rs 69 (only if sustains above Rs 60 levels)

Upside potential: 8% and 15%

Although the counter was locked in 10 per cent upper circuit, the stock price has reached near the resistance of 100-day moving average (DMA) placed at Rs 60 mark. That said, the Moving Average Convergence Divergence (MACD) is supportive of the upside move with the indicator crossing the zero line upward. The next upside may lead towards Rs 65 and Rs 69 levels, if the counter manages to sustain above 100-DMA actively. CLICK HERE FOR THE CHART
 
Deepak Fertilisers & Petrochemicals Corp. Ltd (DEEPAKFERT)

Likely target: Rs 430 and Rs 450

Upside potential: 8% and 12%

The stock has surged over 40 per cent so far in June and the price action indicates the momentum could continue for upcoming sessions. The overall trend is heading towards Rs 430 and Rs 450 levels, as per the daily chart. The immediate support comes at Rs 365 levels. The stock is witnessing aggressive bullishness in the overbought category suggesting a firm underneath strength. CLICK HERE FOR THE CHART