Big Movers on D-St: What should investors do with Bandhan Bank, Kalyan Jewellers and Glenmark Pharma?

Sectorally, buying was seen in banks and metals while selling was seen in telecom, realty, utilities, and power stocks.

Stocks that were in focus include names like Bandhan Bank which was down by over 5%, Kalyan Jewellers which fell nearly 10% and Glenmark Pharma which was up over 2% on Tuesday.

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

Bandhan Bank: Sell on Rise
From the high of 255 level made in December 2022, the stock witnessed some selloff as it corrected to make a 52-week low of 207 odd levels in February 2023.

The price has made a Lower Top Lower Bottom Pattern during this correction. In the current week, the price breached the previous 52-week low of 197 and corrected further to make lows of 186 odd levels with high volumes.

Price is currently witnessing more selling pressure and has also moved below all three major averages of 20-DMA, 50-DMA, and 200-DMA.

The RSI Oscillator is also moving in a downward trend, indicating lower levels can be seen further. Hence, we would avoid buying at this level and can sell on the rise around 215 odd levels for correction till 165-150 odd levels in the next 2-3 months.

Kalyan Jewellers: Avoid
After making a double-top around 133 odd levels in December 2022, the price has witnessed some selloff as it made a low of 103 odd levels.

From the lows, the stock gave some pullback as it retraced almost 70% of the previous rally to make a high of 124 odd levels.

In the last 5-7 days, the price moved in the range and the price gave a sharp correction to make two month low of 105.6 levels this week along with high volumes.

The stock is currently witnessing more selling pressure and has also moved below the 20-DMA and 50-DMA of 115.1 levels which indicates more downside from here.

The RSI Oscillator is also moving in a downward trend indicating lower levels can be seen. Hence, we would avoid buying at this level and can sell on rises around 112-115 odd levels for correction till 100-95 odd levels in the next 2-3 months.

Glenmark Pharma: Buy
From the low of 369 odd levels, the stock has given a sharp upside rally to make a 10-month high of 454 odd levels. Volumes were quite high during this period.

From the high price, it witnessed some sell-off as it retraced almost 39% of the previous rally to make a low of 414 odd levels. After making double bottom around 414 odd levels, the price gave some pullback.

In the last 5-8 trading sessions, the stock has formed a Flag Pattern. The RSI Oscillator is moving in an upward trend along with an increase in volume indicating further upside from here.

Hence, we would buy at the current level and more at dips of 430 with a stop loss of 410 on a weekly closing basis for an upside level of 500-550 in the next 6-8 months.

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