Stocks that were in focus include names like Hero MotoCorp, which was down 3.24%, Power Grid which fell 5.17%, and IDBI Bank, whose shares gained 8.5% on Tuesday.
Here’s what Viral Chheda, Sr Technical Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today:
Hero MotoCorp – Buy
After making a two-year high around 3170, the stock moved in the range of 3016-3170 odd levels. In this week, with relatively higher volume, the price breached the consolidation phase and closed above that level, indicating further upside from here.
The stock witnessed some selling pressure around 3240 as stock corrected to test the previous lows of 3016. It gave some pullback to close above 3100, indicating buyers are giving the fight to take the price higher.
The price is likely to move sideways to the upside for some days and once it goes above the 3250 odd level, we can see further upside till 3500-3700 odd levels.
The stock is currently moving above all three major averages of 20 DMA, 50 DMA and 200 DMA. Hence, one can buy at the current level and more at dips of 3020 with an SL of 2900 on a weekly closing basis and on the upside, it can see a level of 3500 to 3770 in the next 10-12 months.Power Grid – Sell on rise
After consolidating in the range of 200-220 from Oct 2022 to Jan 2023, the price has given a sharp upside rally to make an all-time high of 267 odd levels.
During this bull run, the price made the higher top higher bottom pattern as buyers had full control over the price. From the higher level, the stock is witnessing some selling pressure and once the support of 20 DMA of 250 levels is breached on the downside, we can see a fall to 238-230 odd levels.
Bears are having the upper hand as more selling pressure is witnessed. Stock is trading above 20 EMA and 40 EMA is playing as the support line. Once it goes below this level, we can see prices testing the lower levels. The Stochastics Oscillator is moving in an overbought zone along with an increase in volume, indicating further downside move from here.
Hence, one can sell at a rise of 255 and furthermore, at a rise of 260 with an SL of 270 on a weekly closing basis and on the downside, the stock can see a level of 30 to 220 in the next 4-6 months.
IDBI Bank – Buy
After consolidating in the range of 51-57 from April 2023 to July 2023, the price has given a sharp upside rally to make a 52-week high of 63 odd levels.
During this rally, the bulls had upper hand against the bears. From highs price, the stock witnessed some correction as it made a low of 56, taking support of 20 DMA around that level.
The price has formed a descending triangle pattern and today with high volume, the price has breached the range and closed at a new high of 63. We can see further upside from hereon. Volumes were on the rise as buyers were having full control over price.
The Stochastics Oscillator is moving in an upward trend along with an increase in volume, indicating further upside move from here.
Hence, one can buy at current level and more at dips of 58 with an SL of 52 on a weekly closing basis and on upside, the stock can see a level of 80 to 90 in next 10-12 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)