Big Movers on D-St: What should investors do with Asian Paints, Berger Paints and GMDC?

Sectorally, buying was seen in finance and banking stocks while selling was visible in IT, realty, capital goods, and infra counters.

The S&P BSE Midcap index fell nearly 2 per cent while the S&P BSE Smallcap index was down nearly 3 per cent.

Stocks that were in focus included names like Asian Paints which tanked over 8 per cent, which lost more than 7 per cent, and GMDC which plunged over 19 per cent on Wednesday.

Here’s what Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, recommends investors should do with these stocks when the market resumes trading today.

Asian Paints | Sell | Stop Loss: Rs 2910| Target: Rs 2730

Asian Paints tumbled as much as 8 per cent ahead of doubling the capex into the paints business to Rs 10,000 crore.

It may disturb the market structure. On the technical front, the stock is sustaining below the 100 & 200 DEMA, momentum oscillators RSI is headed downward and reads at 36, which suggests further downward movement in the prices.

Berger Paints | Sell | Stop Loss: Rs 585| Target: Rs 525-510

Shares price of Berger Paints slipped over 8 per cent to hit a fresh 52-week low as Grasim Industries doubled the capex into the paints business to Rs 10,000 crore. The announcement from Grasim Industries raises concerns about business disruption in the paint sector.

On the technical front, the stock is sustaining below all the important moving averages, and momentum oscillator RSI continues its lower low formation, suggesting further downward movement in the prices.

GMDC | Sell | Stop Loss: Rs 142 | Target: Rs Rs 110

Shares price of GMDC tanked over 19 per cent on Wednesday. Prices have declined over 42 per cent from the all-time high; during the session stock price formed a low of Rs 130.50 which is the lowest since March 3, 2022.

The stock has given a fresh breakout after a prolonged consolidation of nearly two weeks within the range of Rs 167 to Rs 185. Prices are likely to face resistance around Rs 142 levels on the upside.

While on the downside, Rs 128 will act as an immediate support area. Below this, we can expect a drag down towards Rs 110 levels in the near term.

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