Big Movers on D-St: What should investors do with Aditya Birla Capital, Bank of India and IDBI Bank?

S&P BSE Sensex rallied 177 points while Nifty50 closed above 18,600 levels.

Stocks that were in focus include names like

which was up over 5%, which gained nearly 3%, and which hit a fresh 52-week high to close with gains of over 2% on Tuesday.

Here’s what Priyank Upadhyay, VP – Research, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:


Aditya Birla Capital: Buy
In June 2022, prices made a low of around 86 and since then it has rallied towards 140, making higher lows and higher high structure as per the Dow theory which is a bullish sign.

Prices are trading above the 20-and 40-day EMA at 128/123 which suggests that the trend and momentum are on the higher side.

Recently, prices have given a breakout of a flag pattern on the daily charts with targets coming around 155.

Volume has also risen sharply suggesting a strong momentum. RSI is also trading above 60 which is a bullish sign suggesting strong trend ad momentum.

Any dips towards 135/130 zones could act as support for an upmove toward 155-160. A break below Rs 123 could trigger a selloff.

Bank of India: Book Profits
Prices have given a breakout from a major one-year consolidation pattern from December 2021 to October 2022, when they broke above 60.

After the breakout, prices rose sharply towards 85. This breakout has happened on good volumes and prices are trading above the 20-and 40-Day EMA at 73.90/66.65 suggesting strong momentum and trend.

RSI is trading around 80 which suggests prices are highly overbought and price structure is also suggesting that the up move has come in at a very short time. A dip toward 70/65 cannot be ruled out.

Thus, we suggest traders book profits at current levels of 83 and wait for a dip to re-enter around 65/60 zones again for a medium-term investment point of view for targets of around 100 in the next 6 to 8 months.

IDBI Bank: Buy on dips
Prices have moved up sharply since July 2022 and have formed a higher low and higher high structure as per the Dow theory.

Prices are trading around the 52-week high of 54 which is a positive sign. The last 4 days have seen a sharp rise in volumes which suggests a rise in price is on good volumes which is a positive sign.

Prices are trading above 20-and 40-Day EMA placing at 48.60 and 46.60 which suggests that the trend and momentum are on the upside.

RSI has just crossed above the 60 mark, on the daily charts suggesting that momentum is building and we could expect prices to rise in short term.

Thus, we suggest traders to accumulate this stock on dips to 49/45 zones for targets of 60/65 in short to medium-term risk at 42.

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