Big Movers on D-St: What should investors do with Sona BLW, Mahindra CIE and Tata Motors?

The S&P BSE Sensex fell more than 600 points while Nifty50 closed below 18000 levels.

Sectorally, buying was seen in metals, oil & gas, healthcare, and energy stocks while selling was seen in telecom, banks and public sector stocks.

Stocks that were in focus include names like Sona BLW which was up 6%,

which hit a fresh 52-week high and which rose more than 6% and was also the top Nifty gainer 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:

Sona BLW: Buy
After making an all-time high of around 840 in December 2021, the price gave a sharp correction to make a 52-week low of 398 odd levels in December 2022.

During this period, the price has made a Lower Top Lower Bottom Pattern. At a lower level, the stock moved sideways for a few weeks and after consolidating in a range; the price has given some pullback with high volumes.

Currently, the stock has some hurdles in the form of 20-DMA placed at 462, and once this level is taken away, we can see a sharp upside from there.

The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating an upside from here.

One can buy at the current level and more on dips of 420 with a stop loss of Rs 390 on a weekly closing basis. On the upside, we can see a level of 520-560 in the next 6-8 months.

MahindraCIE: Buy
After making a double-bottom pattern of around 168 in April 2022, the stock has witnessed a sharp bull run to make a 52-week high of 322 odd levels in October 2022.

Volumes were quite high during this period. From the high, the price gave some selloff and then moved sideways and for about two months and then it moved in a range of 280-301 levels.

After consolidating, the price breached the range on the higher side and continued its upward move to make a 14-year high of 353 odd levels.

The price is moving above the 50-DMA and 200-DMA which is a good sign for a further up move. The Stochastics Oscillator is also moving in an upward trend.

Currently, the stock is trading at a higher level with volumes on the rise and hence we can see a further upside from here.

We suggest buying at the current level and more on dips to 325 odd level with a stop loss of Rs 300 on a weekly closing basis. On the upside, we can get to around 420-480 in the next 8-10 months.

Tata Motors: Buy
From a high of 494 in August 2022, the stock has given a sharp correction to make a low of 375 odd level. Volumes were quite high during this period.

In the last 10-12 days, the price has moved sideways and is moving in a range of 375-395 odd levels. In the current week, the stock was seen consolidating in a range.

The price breached the range with high volumes and closed above that level which indicates further upside from here.

The Stochastics Oscillator is moving in an upward trend along with an increase in volume that indicates further upside from here.

One can buy at this level and more at dips to 395, with a stop loss of 370 on a weekly closing basis, and on the upside, we can see a target of 480-530 in the next 8-10 months.

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