 "Voda Idea, Suzlon: Trading strategies in stocks where FIIs increased stake")
The Foreign Institutional Investors (FIIs) have been aggressive net sellers in the Indian equity market in the calendar year 2024 so far. The FIIs had net sold stocks worth Rs 1.19 lakh crore as of July 2024.
In the June quarter alone, FIIs net sold shares to the tune of Rs 75,869 crore. Amid the outflows, FIIs have also increased stakes in several Indian stocks. As per the shareholding pattern for the quarter ended June 2024, the highest stake increase by FIIs in a single stock is Ujjivan Small Finance Bank (SFB), wherein foreign investors acquired additional 21.2 per cent stake in the finance company.
Among others, Voda Idea stock saw a near 11 per cent stake buy. That apart, CSB Bank, JSW Energy, Indus Towers, CoForge, KFIN Technologies, Timken India, YES Bank, Sundaram Finance, Inox Wind and Suzlon Energy were few of the other stocks, wherein FIIs increased stake substantially.
Against this background, here's a technical outlook on 5 stocks where the FIIs have increased stake in the June 2024 quarter.
Vodafone Idea
Current Price: Rs 16.36
Also Read
Upside Potential: 16.6%
Support: Rs 15.80; Rs 15.30; Rs 15.10; Rs 14.70
Resistance: Rs 16.40; Rs 18.30; Rs 19.10
Voda Idea stock is seen struggling below its 50-DMA (Daily Moving Average) post the downside breakout on August 02. The 20-DMA for the stock stands at Rs 16.30. The longer-term chart shows that Voda Idea has consistently received support around its 100-DMA post the breakout on May 25.
The overall chart suggests that Voda Idea can rally to Rs 22 on the upside, wherein stands the major resistance - the 100-MMA (Monthly Moving Average) - a technical level the stock had last seen in January 2018. Interim resistance for the stock can be expected around Rs 16.40, Rs 18.30 and Rs 19.10 levels.
Support on the downside for the stock exists at Rs 15.80 - its 20-DMA followed by Rs 15.30 and Rs 15.10 (100-DMA) and Rs 14.70 (200-DMA). Break of the same, can trigger a slide towards Rs 11.80 levels. CLICK HERE FOR THE CHART
CSB Bank
Current Price: Rs 325
Upside Potential: 13.9%
Support: Rs 316; Rs 312
Resistance: Rs 326; Rs 348; Rs 359
CSB Bank stock dropped 22.3 per cent from a high of Rs 404 on July 02 to a low of Rs 314 on August 16. Thereafter, the stock has recouped some losses and is seen trading sideways. At present the stock is seen testing resistance at its 20-DMA at Rs 326. CLICK HERE FOR THE CHART
With key momentum oscillators in favour of an upside, the stock may look to recover further ground in the coming sessions. As such, the stock may rally up to 370; with interim resistance likely at 38.2 per cent and 50 per cent retracements at RS 348 and Rs 359, respectively.
On the other hand, in case, the stock fails to conquer the 20-DMA, it may slip back towards the lower-end of the Bollinger Bands on the daily scale at Rs 316. Strong support for the stock exists at Rs 312 in the form of its 100-WMA (Weekly Moving Average).
JSW Energy
Current Price: Rs 720
Downside Risk: 8.3%
Support: Rs 700
Resistance: Rs 739; Rs 775
At present, JSW Energy stock is seen testing resistance at its super trend line at Rs 739 on the daily scale. The medium-term (weekly) chart shows that the stock has been consistently making higher highs and higher lows. Recently, the stock tested support at its 20-WMA, which stands at Rs 669 and bounced back.
While the price-action remains positive on the weekly scale, key momentum oscillators have shown negative divergence. Hence, the stock may face stiff resistance around Rs 775 levels, and display tepid trend in the near-term.
On the downside, the stock has near support at Rs 700, below which the key support stands at Rs 669 and Rs 660. CLICK HERE FOR THE CHART
KFIN Technologies
Current Price: Rs 1,042
Downside Risk: 11.2%
Support: Rs 977
Resistance: Rs 1,084; Rs 1,190
KFIN Technologies stock is seen making higher-highs and higher-lows post the breakout on July 25. In the last one month, the stock has found support around its 20-DMA in times of a decline. CLICK HERE FOR THE CHART
The 20-DMA now stands at Rs 977. Further, the overall bias for the stock is likely to remain positive as long as the stock holds above Rs 940 levels. However, given the current overbought conditions, the stock may face some resistance around its recent peak at Rs 1,190 levels; with interim resistance likely at Rs 1,084.
On the downside, break and trade below the 20-DMA can trigger a fall to Rs 925 levels.
Suzlon Energy
Current Price: Rs 76.8
Upside Potential: 14.2%
Support: Rs 75.70; Rs 72.80; Rs 68.70
Resistance: Rs 82.50
Suzlon Energy stock has witnessed a phenomenal round on the bourses since the start of financial year 2023-2024. The stock has zoomed 966 per cent or 10.7 fold in the last 17 months.
The long-term chart suggests that the bias for the stock is likely to remain favourable as long as the stock holds above Rs 72.80. At present, the stock is seen testing support around its 20-DMA at Rs 75.70; below which the next major support stands at Rs 68.70.
On the upside, the stock needs to break and trade consistently above Rs 82.50 levels, to resume its upwards momentum. As such the stock can potentially rally to Rs 87.70. CLICK HERE FOR THE CHART
