Trading ideas: The Big Movers on D–St: What should investors think about Adani Total Gas and HCL Tech?

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Tuesday’s Indian market closed in red for the second straight day. The S&P BSE Sensex plunged more than 500 points, while the Nifty50 closed below 16,100 levels.

Sectorally, buyers were seen in utilities, telecoms, power and realty. Selling pressure was apparent in IT, metal, and FMCG counters. The stocks in focus are

, which fell over 1 per cent on Tuesday, , and L&T.

Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:

Target Rs 1,150-1.250| Target Rs 1,150-1,250

The stock made a low of about Rs 375 in March 2020 and has since rallied sharply to reach an all-time high at Rs 1,377 in September 2021.

The stock had high volumes during this period and made a Higher Top & Higher Bottom Pattern. This was a positive for bulls.

Price moved sideways from January 2022 to the Rs 1,377 level. Then, it corrected to retrace almost 45% of the previous upside rally, to reach a low at the Rs 925 level.

The price is currently in a bear market and has support at Rs 900 odd levels. This level is a good place to enter, and even more at Rs 855, for an upside level Rs 1,150-1.250 over the next 6-8 month.

Therefore, we recommend investors wait to see the current level and then enter on dips of around 900 with additional dips of Rs 855. A stop loss of Rs 790 is also recommended. We can expect Rs 1,150-1.250 odd levels over the next 6-8 month.

Adani Total Gas: Wait

Price has surged sharply from a low of Rs.174 odd levels in September 2020 to reach an all-time high at Rs. 2,740 in 2022. This period saw price reach Higher Top Higher Bottom. Volumes were also very good during this period.

The price saw some profit over the next three months as it met resistance at all lower tops and received support at every lower bottom.

The price broke the trend on the higher end and has given a sharp uptrend to reach a new high of Rs 2,844 odd. The price is currently moving higher and it is not advised to enter at that level. You can wait for the correction to occur and then enter at Rs 2,650 or more at dips Rs 2,550 for an upside of Rs 3,00-3,300 over the next 6-8 months.

Therefore, we recommend investors wait to see the current level and take risks with dips towards Rs 2.650 and more. Further dips at Rs 2.550 will be possible. A stop loss of Rs 2.300 is also recommended. The upside is that we could see levels of Rs 3000-3300 over the next 6-8 month.

L&T: Buy
After a March 2020 low of Rs 661, the stock experienced a sharp uptrend to hit an all-time high in January 2021 at Rs 2,078.

The stock has seen a 1417 point upside rally. The stock reached a peak of Rs 2,078, but it was subject to selling pressure. It retraced nearly 44 percent of its previous rally and fell to a low of Rs 1,456 odd.

This correction has seen the price move in Parallel Channel. The previous week’s higher volume price broke the pattern and closed above the level.

The price has closed at 21-Days EMA 1662 level. The Stochastic Oscillator shows an upward trend with an increase of volume. This suggests upward movement with little downside risk.

For an upside of Rs 1,950-2.150 in the next 6-8 month, one can buy at the current market price and more at dips Rs 1,595

We recommend that you buy at this level, and more at dips at Rs 1,595, with a stop loss at Rs 1500. Over the next 6-8 month, upside is expected at Rs 1,950-21,150

(Disclaimer) Recommendations and suggestions made by experts are their opinions. These views do not reflect those of Economic Times.

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