Sectorally, buying was seen in metals, utilities, banks, oil & gas, and auto stocks while selling was visible in IT, consumer durables, and realty stocks.
Stocks that were in focus include names like TCS which was down more than 1% ahead of its results on Wednesday, ITC which rose nearly 2% to hit a fresh 52-week high, and Bajaj Auto which also closed with gains of 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:
Bajaj Auto: Buy on dips
After making a low of around 2918 odd levels in September, the price has given a sharp move to make an all-time high of 4132 odd levels on the weekly chart.
During this move, the price has made a Higher Top and Higher Bottom pattern. From the high price, we have seen some profit booking as it retraced almost 56% of the previous rally to make a low of 3461 level.
After consolidating in a narrow range, the price breached the range on the higher side and went up to make a new all-time high of 4160 odd levels.
During the last 6 months, the stock has made a ‘Cup and Handle’ pattern with the neckline forming around 4100 odd levels and in this week with high volumes, the price has moved above the neckline level.
A close above the neckline level indicates further upside from here. The RSI Oscillator is moving in an upward trend along with an increase in volume, indicating further upside from here.
Hence, we can buy at the current level and add more on dips to 3900 with a stop loss of 3750 on a weekly closing basis. On the upside, we can see levels of 4750-5100 in the next 10-12 months.
ITC: Buy
On the daily chart from Sept 2022 to Jan 2023, price has moved in a range of 318 to 356 odd levels. Volumes were quite low during this period.
The price breached the consolidation phase at 356 and moved upwards with high volumes to make an all-time high of 394 odd levels.
In the last 20-25 days, the price has made a rounding bottom with the neckline forming around 394 odd levels and in this week with relatively high volumes, the price has moved above the neckline making a new all-time high of around 397.
We can see further upside from here. The RSI Oscillator is moving in an upward trend along with an increase in volume, indicating further upside from here.
Hence, one can buy the stock around this level and more on dips of 382 with a stop loss of 365 on a weekly closing basis. On the upside, we can see levels of 450-490 in the next 6-8 months.
TCS: No-trade zone| Buy on dips
After making a high of around 3575 odd levels in Feb 2023, the price has given a sharp correction to make a low of 3095 odd levels on the daily charts.
The price has made a Lower Top Lower Bottom pattern during this period. At the lower level, the price consolidated in the range of 3095-3170 and once it breached the range on the higher side, we saw some pullback to make a high around 3272 odd levels.
Currently, the price is moving in a no-trade zone and we should wait for some correction to buy at dips or wait for some breakout above 3320.
The stock is currently moving around the 20-DMA and 200-DMA and once it goes below 3170 odd levels, we can see correction till 3100 odd level.
Hence, one can wait for some correction and buy on dips of 3100, with a stop loss of 2850 on a weekly closing basis. In the long-term, we can see some upside till 3700-4000 odd levels.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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