Big movers on D-Street: What should investors do with Mahindra CIE Automotive, Elgi and Dixon?

Sectorally, selling was seen in metal and financial stocks on profit booking. With the major earnings behind us, analysts said participants are eyeing global markets for cues but they’re not offering any clarity as of now.

Stocks that were in focus include names like Mahindra CIE Automotive, which rose 4.55%, Dixon which added 7% and Elgi which gained 4.6% on Wednesday.

Here’s what Rohan Shah, Head Technical Analyst at Stoxbox, recommends investors should do with these stocks when the market resumes trading today:

Elgi – Buy
The stock experienced a strong up move from May 2022 to September 2022, where the price rallied more than 125% from 249 to 567 levels.

However, post that, the stock witnessed a price and time correction, dragging the stock lower by 35% from the peak. In the last couple of sessions, the price generated a strong buying force and in yesterday’s session, stock printed a new lifetime high.

The stock surpassed its previous supply zone with supportive momentum and strong volumes. Hence going ahead, if price manages to sustain above the 560-550 zone, it is expected to continue upward momentum towards 625 levels in the short term, while in the medium term, the stock has the potential to hit 700 levels. On the other hand, support past 560, comes at 515 levels.

Mahindra CIE Automotive – Buy
The auto ancillary company staged a bullish breakout following a cup and schematic on the highest positive volume recorded for the year. The volumes surged 924% above the average and this manifests strength in the breakout.

The stock has surged over 700% from the lows made in March 2020 and the breakout from the continuation pattern of cup and handle along with a stronger relative performance compared to the 50-pack index, indicates the trend to continue further.

The support comes near 435 whereas the level of 540 is anticipated to act as resistance on the higher side.

Dixon – Buy
The stock has broken out of the symmetrical triangle pattern with high volumes and it has successfully filled the gap area by closing above the same.

Now this zone will act as support for the stock. Looking at the momentum indicator, MACD suggests a bullish move is still intact in the stock.

It moved above the 0 line after a wide consolidation near the 0 line. The two down-sloping trend lines marked on the chart can act as immediate resistances as well as the next targets for the stock going forward. The derivatives data also suggest that the stock will do well going forward.

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