The shares of LIC, Kohinoor Foods and Adani Wilmar have fallen sharply in the last couple of sessions. In the last five sessions LIC stock has fallen 7 per cent, while Kohinoor Foods is down 10 per cent while Adani Wilmar shares have plunged 12 per cent during the same period. While analysts think Kohinoor Foods stay sideways, they find risk-reward attractive in case of LIC. Technical analysts believe that a stay above rs 530 level holds the key for Adani Wilmar.
Kohinoor Foods shares are in a long consolidation phase and are forming a base around Rs 50 after giving a meaningful correction from higher levels.
The price structure of Kohinoor Foods is not lucrative. The structure is sideways, one can say. On the higher side, Rs 64 is acting as an immediate resistance. One can expect a sideways structure to end above this level. That will start a new leg of rallying to Rs 70-plus levels. During any corrections, the level of Rs 49 is the main support.
LIC had made a break from the downward-sloping resistance at Rs 655 levels earlier this month. The stock price crossed above the 100 day MA, showing that the intermediate trend of the stock has turned bullish. The stock price witnessed an upside momentum after the breakout. The stock price is back to the breakout level, which coincides with the 61.80 per cent retracement levels, as per the Fibonacci retracement of its recent move from Rs 585 to Rs 750 levels.
The support of 100 day MA is very close to these levels, making Rs 650 -- 655 levels a strong support zone for the stock. The prevailing levels make LIC an attractive buy with a favorable risk-reward ratio.
CMT, Foram Chheda, is a Technical Research Analyst and founder of Chartanalytics.co. Adani Wilmar saw a breakdown of the key support level of Rs 530 in Friday's session. The stock is witnessing a bounceback and trading with a 5 per cent upward circuit because of the oversold momentum indicators. It needs to gain strength above the Rs 530 level to confirm any trend reversal. We can expect a fresh round of selling. We can expect a move towards the Rs 600 -- 620 levels if it stays above the 530 level.