Big Movers on D Street: What should investors do with Hero MotoCorp, Zomato and Cyient?

The S&P BSE Sensex rose 118 points to 62,547, while Nifty50 settled at 18,534 levels.

Among the sectors, auto gained 0.92%, pharma rose 0.69%, PSU Bank insdex added nearly 1% while IT, oil and gas were the laggards

Stocks that were in focus include names like Hero MotoCorp, which gained 3.09%, Zomato, which was up 4.71% and Cyient, whose shares gained 6.49% on Friday.

Here’s what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today

Hero MotoCorp — Buy above Rs 2,950

The counter is in a long consolidation range, and it has also formed a double bottom formation. A breakout will be confirmed when the counter closes above Rs 2950.

The structure of the counter is very impressive, as it is trading above all its important moving averages. Rs 2950 is the first level of resistance. If the price manages to break above the resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of Rs 3200 or even higher.On the downside, if there is a correction, the major support level is identified at Rs 2600, where a cluster of moving averages formed a base.

Zomato – Buy for long term
The primary structure of the counter is following a downtrend. However, it has formed a base at around Rs 40. The overall structure also looks lucrative for long-term investors as it trades below all-important moving averages.

On the upside, Rs 75–76 is the psychological resistance level. Above this, we can expect a rally towards Rs 100. On the downside, Rs 60 is an important support level during any correction.

Cyient — Buy
The stock is looking lucrative. On the longer timeframe, there was a breakout of rounding formation with strong volume, which suggests much more potential upside in this counter, while on the shorter time frame, it has given a V-shaped recovery.

The momentum indicator RSI is trading above the 50 mark with a positive bias, whereas MACD is witnessing a centerline crossover. On the upside, Rs 1,600 will be an immediate hurdle. On the downside, the 20-DMA of 1300 is a strong support level.

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