Trading strategies in stocks that turned ex-bonus, split this week
Source: Business Standard
A total of 9 stocks, out of which 5 turned ex-bonus, while the remaining turned ex-split this week. Prominent among these were Bigbloc Construction, Monarch Networth Capital and Franklin Industries, which traded ex-bonus in the ratio of 1:1 respectively.
That apart, Indo Cotspin turned ex-date for 7:10 bonus issue today. The company has offered 7 new equity shares of Rs 10 each for every 10 equity shares held by the shareholders.
Similarly, Sportking India and Onesource Ideas Ventures turned ex-split in the 1:10 ratio; wherein the face value of each equity share of Rs 10 was split into 10 equity shares with a face value of Re 1 each.
In general, stock prices of the relevant companies tend to gain ahead of the corporate action be it bonus or sub-division of equity shares. However, stocks also do re-rate post the ex-date.
As such, here’s a technical outlook on select 5 stocks that turned ex-bonus or ex-split this week.
Bigbloc Construction
Current Price: Rs 134
Downside Risk: 20.2%
Support: Rs 133; 128.50; Rs 118
Resistance: Rs 140.70; Rs 149
Bigbloc Construction stock seems placed in neutral zone on the daily scale, with the stock expected to face resistance around Rs 140.70 and Rs 149. On the downside, the stock is seen trading near its crucial 20-WMA (Weekly Moving Average) support, which stands at Rs 133.30.
Monarch Networth Capital
Current Price: Rs 435
Upside Potential: 11.5%
Support: Rs 415; Rs 390
Resistance: Rs 450; Rs 465
Monarch Networth stock is seen trading close to its adjusted long-term supports at Rs 439 and Rs 420 levels. As long as the stock sustains above these support levels, the stock can attempt to extend the rally. On the upside, the stock can potentially rally to Rs 485 levels; with interim resistance seen at Rs 465 and Rs 450 levels.
Krishna Institute of Medical Sciences (KIMS)
Current Price: Rs 555
Upside Potential: 10.5%
Support: Rs 535; Rs 525; Rs 512
Resistance: Rs 560; Rs 589
KIMS stock has witnessed a strong 59 per cent rally in the last four months from levels of Rs 365 at the end of May to a high of Rs 580 this month. The trend as per the long-term chart is bullish as the stock trades consistently above the higher-end of the weekly and monthly Bollinger Bands.
Andhra Paper
Current Price: Rs 107
Downside Risk: 29.2%
Support: Rs 99.30; Rs 95.70
Resistance: Rs 112; Rs 117.50
Andhra Paper stock has given a downside breakout on the daily scale with the stock slipping below its super trend line support. Chart suggests, that the near-term bias is likely to remain tepid as long as the stock remains below Rs 122 levels; interim resistance for the stock is seen at Rs 112 and Rs 117.50.
Sportking India
Current Price: Rs 150
Support: Rs 142; Rs 134
Resistance: Rs 155
The price-to-moving averages action seems favourable for Sportking India stock. However, the stock seems to have entered a phase of consolidation on the weekly scale, indicating immediate support at Rs 142 and resistance at Rs 155 levels. The long-term chart hints that the bias shall remain positive as long as the stock holds above Rs 134.
First Published: Sep 13 2024 | 1:21 PM IST
