Big Movers on D-St: What should investors do with Motherson Sumi, Kalyan Jewellers, and City Union Bank?

Sectorally, buying was seen in capital goods, public sector, realty, auto, power and utilities.

Stocks that were in focus include

Wiring which fell more than 1 per cent, Kalyan Jewellers which gained nearly 4 per cent, and which hit a 52-week high 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:


Motherson Sumi: Avoid

On a longer-term chart, the stock gave a sharp upside move from its lower level of 27 in March 2020 to make an all-time high of 151 in June 2021.

Volumes were quite high, and a Higher Top Higher Bottom pattern was seen during that period. From June 2021 to January 2022, the stock moved in the distribution phase and once it went below multiple bottoms of 110 level, a sharp selloff was seen till 64 odd levels.

Price is also moving below the 200-WMA of 85. The Stochastics Oscillator is moving in a downward trend indicating further correction can be seen.

One should avoid buying this stock at this level and on dips can be bought for an upside level of 95-105 in the next 6-8 months.

Hence, we recommend investors wait for some more dips and buy the stock around 56-odd levels with a stop loss of 48 on a weekly closing basis. On the upside, we can see levels of 95-105 in the next 6-8 months.

Kalyan Jewellers: Buy

On the daily chart, we can see that the stock has moved in a range of 55 to 67 from February 2022 to August 2022.

After consolidating for mere 6 months, the price breached the range on the higher side to give a sharp upside rally to 104.65 odd levels.

Volumes were quite high, and a higher top higher bottom pattern was formed. From highs, the price witnessed some selloff as it took the support of previous bottoms around 93 and moved above the previous high of 104.65; the stock indicated further upside from here.

Stochastics Oscillators are moving in an upward trend along with an increase in volume indicating some bull run from here. One can buy at this level for an upside target of 135-175 in the next 6-8 months.

Hence, we recommend buying at this level and more at dips of 100 with a stop loss of 93 on a weekly closing basis and on the upside, we can see a level of 135-155 in the next 6-8 months.

City Union Bank: Buy

On the weekly chart, after making a high of 200 in November 2020, the stock has given a sharp correction to make a 52-week low of 109 in March 2022.

At a lower level, the price has witnessed some buying pressure as it retraces almost 90% of the previous rally to make a high of 191 in Sept 2022.

In the last 5-8 weeks, the price has given some correction forming a Flag Pattern taking support of every lower bottom and facing the resistance of every lower top and the previous week with relatively higher volume price breached the pattern and closing above that indicate further upside rally.

The stochastics Oscillator has crossed its red line along with an increase in volume indicating upward movement with limited downside risk. One can buy at this level for an upside target of 220-240 in the next 6-8 months.

Hence, we recommend buying at this level and more at dips of 181 with a stop loss of 166 on a weekly closing basis and on the upside, we can see a level of 220-240 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)