Big movers on D-Street: What should investors do with TCS, Natco Pharma and GRSE?

Stocks that were in focus include names like TCS, which gained 0.3%, Natco Pharma, which jumped 4.7%, and GRSE, whose shares rose 6.2% on Thursday.

Here’s what Ameya Ranadive, Sr Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.

Currently trading at Rs 4,225, TCS has been exhibiting strong technical resilience, maintaining a crucial support level around ₹4,165 for the last two and a half months. This base has been well-respected, signaling underlying strength in the stock. On a broader time frame, TCS is moving within an upward trending channel and is currently positioned near the lower boundary, indicating a potential for an upward reversal. The Relative Strength Index (RSI) is at a low of 36, suggesting the stock is in an oversold zone, which typically signals a buying opportunity. Additionally,TCS is holding firmly at its 100-day EMA, with immediate resistance seen at the 20- and 50-day EMAs. With earnings due today, the stock’s movement will largely depend on the results and management’s commentary.

A favorable report could provide the catalyst for a strong rally. In terms of strategy, TCS remains a “buy on dips” candidate with a potential upside to Rs 4,500–4,650, making it an attractive option for both short- and medium-term investors.

Natco Pharma, currently priced at Rs 1,436, has been a strong performer over the past 11 months, nearly doubling in value from around Rs 800 to 1,600, driven by favorable sectoral tailwinds within the pharma space. However, recent price action suggests the stock is going through a phase of distribution, as it has seen a pullback from its peak.

Despite this, the stock continues to hold above its key 20- and 50-day EMAs, providing a strong technical floor. The RSI has corrected from overbought levels to around 48, indicating a healthy consolidation phase.

The stock is expected to move gradually up to the Rs 1,600 level, but a breakout beyond this point could trigger a faster uptrend, with targets of Rs 1,650–1,720. Investors should also be cautious of the Rs 1,340 support level, as a break below this could signal a loss of momentum and trigger further downside.

GRSE, trading at Rs 1,750, has had a spectacular run over the past year, delivering multibagger returns, with its stock price soaring from Rs 700 to a high of Rs 2,800. However, the stock has since corrected by almost 50%, and it is now testing a critical support level at ₹1,750. GRSE is also finding additional support at its 200-day EMA, although it faces considerable resistance at multiple levels, including the 20-, 50-, and 100-day EMAs, as well as a downward sloping trendline.

The RSI, which has rebounded from oversold levels to 50, indicates that the stock may be gaining strength and could be poised for a reversal. Given the current risk-reward setup, GRSE offers a compelling buying opportunity with a potential target of ₹2,400.

However, it is important to monitor the Rs 1,400 level closely, as a breach of this support could negate the bullish outlook and suggest further downside pressure.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)