The Indian equities remained buoyant in Thursday's trade after the Union Cabinet cleared the Goods & Services Tax (GST) Amendment Bill. The BSE Sensex rallied over 400 points to reclaim its crucial psychological level of 27,000.
The bill is likely to be tabled in current session of Parliament. Once passed, the GST is expected to transform India's indirect taxation system.
Mudit Goyal, technical analyst, SMC Global Securities has selected Jubilant FoodWorks (up 3.08%), ITC (0.81%), and Exide Industries (5.46%) which are expected to benefit from the bill.
1. Jubilant FoodWorks
"It appears from daily chart that stock is likely to form a Head and Shoulder pattern, which is bearish in nature. As per the chart, stock can also give some bounce back upto 1350 levels, which should be considered as selling opportunity for near term. One can wait for a bounce by 1350 and initiate short for the downside target of 1290-1270 levels with SL of 1375."
2. ITC
"Stock has been witnessed a decent upside from 360 levels and tested 400 in very short span of time. Then after, it was consolidating in the narrow range of 390-400 levels for a week. Due to correction, stock also cracked down sharply and filled the gap area around 360-370 levels, which was formed on December 4. Moreover, Technical indicators like RSI and StochRSI are suggesting buying from current levels by 382."
3. Exide Industries
"Short term and medium term bias remains positive for the stock. It was consolidated in the narrow range and got the breakdown of same. After testing the levels of 161, stock started moving higher that was the 100EMA on daily chart. Today, it is being up by over 6% and forming a long bullish candle on daily chart. Trader which have position in Exideind can hold their position upto 175-178 levels."
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