Big Movers on D-Street: What should investors do with Nykaa, Eicher Motors and IDFC First Bank?

Stocks that were in focus include names like Nykaa, which was down 2%, Eicher Motors, which declined 6% and IDFC First Bank, whose shares fell nearly 4% on Tuesday.

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

Nykaa – Sell
After making an all-time low around 114 in April, the price has witnessed some pullback to make a high of 153 odd levels.

The stock has given almost 35% returns in a span of three months as buyers have the upper hand against the sellers.

In the last 10-12 days, the price is witnessing some selling pressure as it is not able to make new highs and yesterday with high volumes, the price breached the distribution phase to close at 12-day-low. From here, we can see a further downside rally.

The stock is also moving below its 20 DMA of 144, indicating a bearish trend. The Stochastics Oscillator is moving in a downward trend along with an increase in volume indicating some downside.Hence, one can sell at current level and more at rise to 150 with an SL of 158 on a weekly closing basis and the downside can see a level of 125 to 115 in the next 3-4 months.

Eicher Motors – Sell
After making multiple tops around 3750 in June, the price has witnessed some correction to make a low of 3535 odd levels.

Sellers were in control of the price as it corrected almost 200 points from highs. After moving in the range for the last 10-12 days, the price has given a sharp correction and closed near 200 DMA of 3370 odd level.

Volumes were at a peak as bears had the upper hand over bulls. The stock can take some support around 3320, from where we can see some pullback to test the higher level of 3500 and can correct from there to make a new low of 3200-3000 odd levels.

The Stochastics Oscillator is moving in a downward trend indicating some downside. Hence one can sell at the current level and more at a rise of 3500 with an SL of 3650 on a weekly closing basis and the downside can see a level of 3200 to 3000 in the next 3-4 months.

IDFC First Bank – Buy
After making multiple bottoms around 52 in March 2023, the price has given a sharp upside rally to make an all-time high of 84.5 odd levels.

During this period, the higher top higher bottom pattern was seen as buyers having the upper hand against bears.

From highs, the price witnessed some correction and took the support of 20 DMA at 77 odd levels. Currently, the price is moving in an upward-moving channel and once it moves above the upward-moving trend line at 85 odd levels, we can see a sharp up move to 100-120 odd levels.

The price is trading above all major averages which is a good sign for a further up move. Hence, one can buy at the current level and more at dips of 70 with an SL of 65 on a weekly closing basis and the upside can see a level of 100 to 120 in the next 6-8 months.

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