Shipping Corporation, BPCL, NFL: Trading strategies for news-driven stocks

With a strong gap-up on March 2, 2021, BPCL stock is near the resistance range of Rs 481 to Rs 483 levels

Firm global cues and steady recovery in the economic situation back home comforted bulls at the bourses on Tuesday. Domestic equity markets were ruling higher for second straight day, but were facing resistance at top levels. At 11:40 AM, the benchmark S&P BSE Sensex was hovering just above the 50,000-mark, having topped 50,400 levels in the intra-day deals. The Nifty50 index, too, came off highs and was quoting at 14,822 levels.

Amid this volatility, news-driven stocks were topping the charts. BPCL, for instance, was trading as the top performer on the National Stok Exchang, up 4 per cent on the index. The stock, earlier today, hit a fresh 52-week high of Rs 482 after the firm said it will exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore. READ MORE

Another state-owned firm, Shipping Corporation of India, surged over 19 per cent in intra-day trade to hit a fresh 52-week high of Rs 123.55 on the BSE after Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the government has received multiple bids for the company. READ ABOUT IT HERE

Here's how these stocks look on technical charts:  

Bharat Petroleum Corporation Ltd (BPCL): With a strong gap-up on March 2, 2021, the stock is near the resistance range of Rs 481 to Rs 483 levels. If the stock manages to conquer this resistance, the breakout can see a rally towards Rs 500 and Rs 515 levels. The closing basis support comes at Rs 460, as per the daily chart. CLICK HERE FOR THE CHART

Indraprastha Gas Limited (IGL): As per the daily chart, the formation of "Double Top" has built a negative bias in this stock. The stock is now attempting to cross the neckline level of Rs 520. If this move succeeds, a rebound towards Rs 540 and Rs 560 cannot be ruled out. The Relative Strength Index (RSI) has turned up, indicating a short term reversal. That said, the Moving Average Convergence Divergence (MACD) is not showing much strength as it has breached the zero line downward, suggesting a weak sentiment. CLICK HERE FOR THE CHART

Indian Railway Catering and Tourism Corporation (IRCTC): T The weekly chart clearly reflects resistance near the psychological mark of Rs 2,000 levels. Unless the stock breaks above this level, the stock may see some profit booking. That said, the overall trend is bullish above Rs 1,740 levels. A strong consolidation in the range of Rs 1,600 to Rs 1,200 earlier, has initiated a strong upward breakout, as per daily and weekly charts. CLICK HERE FOR THE CHART          
                    
National Fertilizers Limited (NFL): The formation of "Inverse Head and Shoulder" pattern suggests a breakout towards Rs 80 and Rs 88 mark, as per the weekly chart. The volumes have been firmly supportive of the breakout indicating a strong market participation. The bigger trend indicates a rally towards Rs 90 – 95 range as long as the stock defends Rs 50 mark. The short term support comes at Rs 55 levels. CLICK HERE FOR THE CHART
 
Shipping Corporation Of India Limited (SCI): A strong gap-up breakout above Rs 105 levels has opened doors for Rs 140 and Rs 150 levels. This breakout is supported by the consolidation in the range of Rs 96 to Rs 80 levels. The medium-term outlook has turned highly bullish backed by volume-based buying. The closing basis support comes at Rs 102 mark with RSI witnessing buying momentum in the overbought territory. CLICK HERE FOR THE CHART