Sectorally, buying was seen in power, utilities, oil & gas, and energy stocks while selling was visible in FMCG, banks, IT, and finance stocks.
Stocks that were in focus include names like
which rose nearly 4 per cent, which hit a fresh 52-week high, and Tata Consumer which closed 2 per cent lower on Tuesday.
Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:
Aster DM Healthcare: Book Profits
On the daily chart, we can see that for the last 9 months – starting from October 2021 to July 2022 – the price has moved in the range of Rs 170-210 odd levels. Although volumes were quite low during this period.
In August 2022, the price breached the range on the higher side and made a new all-time high of Rs 244 odd levels.
We saw some minor corrections from the highs as the price retested the previous higher level of Rs 210 which played the role of support and bounced back with higher volumes to make a high of Rs 260 odd level.
Currently, the stock is highly overvalued as we can see Stochastics Oscillators are moving in an overbought zone, and from here, we can witness some selloff.
Anyone who has this stock can book profit at this level and wait for some correction to re-enter again around Rs 230.
Hence, we recommend waiting for some correction and buying at lower levels of Rs 230 and more at dips of Rs 215 with a stop loss of Rs 200 on a weekly closing basis, and on the upside, we can see levels of Rs 280-330 in the next 8-10 months.
Ashok Leyland: Buy
After making a low of Rs 33.7 in March 2020, the stock gave a sharp upside rally to make a 3-year high of Rs 154 in November on the weekly charts.
Volumes were quite high during this period. From highs, the price has witnessed selling pressure as it retraced almost 50 per cent of the previous rally to make a low of Rs 93 odd levels.
After taking support of 200-WMA placed at Rs 98, the stock gave a sharp pullback to make a new high of Rs 166 odd level and in the current week with high volumes, price breached the previous all-time high of Rs 167.5 and is currently trading above that level indicating further upside till Rs 200-230 odd levels.
The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating upward movement with limited downside risk.
One can buy at the current price and more on dips towards Rs 150 for an upside target of Rs 200-230 in the next 6-8 months.
Hence, we recommend buying at this level and more on dips towards Rs 150 with a stop loss of Rs 130 on a weekly closing basis and on the upside, we can see levels of Rs 200-230 in the next 6-8 months.
Tata Consumer: Buy
On the weekly chart, after making a low of Rs 214 in March 2020, the stock has given a sharp upside rally to make an all-time high of Rs 889 in September 2021.
The next year’s price has moved in the range forming a Symmetrical Triangle Pattern taking support of every higher bottom and facing the resistance of every lower top.
Stochastic Oscillator is moving in an upward trend along with an increase in volume indicating upward movement with limited downside risk.
One can buy at the current price and more on dips towards Rs 790 for an upside level of Rs 960-1050 in the next 6-8 months.
Hence, we recommend buying at this level and more at dips of Rs 790 with a stop loss of Rs 750 on a weekly closing basis, and upside we can see the level of Rs 960-1050 in the next 6-8 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)