Trade Spotlight: Your current approach to Varun Beverages, Piramal Pharma, and Cochin Shipyard

 Trade Spotlight: Your current approach to Varun Beverages, Piramal Pharma, and Cochin Shipyard

Positively, Varun Beverages had a breach of the falling resistance trendline that was adjacent to the highs of September 29 and November 6, and it traded well above all significant moving averages (20, 50, 100, and 200-day EMA - exponential moving average).

The Nifty50 formed a Tweezer Top and Doji candlestick pattern on November 7, therefore it is believed that the 19,400–19,450 level will be important to look out for. Experts claimed that if the index breaks significantly on either side, then 19,500–19,600 on the upper end and 19,300 on the lower may be achieved.

On November 7, the BSE Sensex dropped 16 points to 64,942, while the Nifty50 recovered losses from the day's low to close only 5 points down at 19,407 overall. Four days in a row, the larger markets continued to rise, as seen by the 0.75 percent and 0.3 percent increases in the Nifty Midcap 100 and Smallcap 100 indexes, respectively.

Among the active stocks that performed better than the overall markets were Varun Beverages, Cochin Shipyard, and Piramal Pharma. On the daily charts, Piramal Pharma shares developed a bullish candlestick pattern with an upper shadow and robust volumes, rising 4% to Rs 113. The stock has traded far above all significant moving averages and has broken out of a downward-sloping resistance trendline.

Varun Beverages developed a good bullish candlestick pattern on a daily basis and closed at a record closing high of Rs 991, up roughly 5% on strong volumes. Positively, the stock broke out from the falling resistance trendline that was adjacent to the highs of September 29 and November 6. The company also moved well above all significant moving averages, including the 20, 50, 100, and 200-day exponential moving average (EMA).

In addition, Cochin Shipyard's shares closed 3.8 percent higher at Rs 1,042 on above-average volume, trading well above all significant moving averages. Following its breakthrough of the downward-sloping resistance trendline in the previous session, when it established a lengthy bullish candlestick pattern with above-average volumes, the stock had a solid opening and formed a bullish candlestick configuration with an upper shadow on the daily timeframe.

When the market opens for business again today, investors should do the following with these companies, according to Ashika Stock Broking's Viraj Vyas:

Varun Liquors

The stock, which is a component of the FMCG sector, has been on a robust and ongoing bull run. With the exception of little adjustments, the stock has increased steadily since 2021.

The stock is now trading at a record high and is in unknown territory. To safeguard profits, investors should stick onto the stock and place trailing stop-losses around levels around Rs 920.

Regarding traders, there has been a recent strong breakout in the stock with substantial trading activity. The stock is thus anticipated to climb in the near future into the Rs 1,080–1,100 range.

Piramal Health

Since November 2022, the stock—which is traded as a demerged business from Piramal Enterprises—has been firmly stuck in a sharp downward trend. There are currently indications, however, that the trend could be reversing.

A Cup & Handle structure, which often denotes accumulation, has developed in the stock. Strong trade volumes and a closing over Rs 109 provided confirmation, which might indicate the start of a new positive upsurge in the stock.

Cchin Shipbuilding

After listing, the stock had been a relative underperformer, but after 2022, things started to change around. The stock started out on a solid uptrend, breaking beyond its previous high of Rs 685, and it rose further to hit Rs 1,250.

The stock has corrected in price and time over the last several weeks, but the general structure suggests that these dips might be stages of accumulation. It is anticipated that the stock would aim for Rs 1,250 in the next weeks, if it sustains support around levels around Rs 950.