Big Movers on D-Street: What should investors do with Tata Steel, TVS Motor and DCM Shriram?

Stocks that were in focus include names like Tata Steel, which rose 3.12%, TVS Motor, which gained 5.86%, and DCM Shriram, whose shares fell 6.38% 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:

Tata Steel – Buy
After consolidating in the range of 98-108 from Mar 2023 to June 2023, the price has given a sharp upside rally to make a high of 109 odd levels.

During this bull run, the price made a Higher Top Higher Bottom pattern as buyers had full control over the price. At the higher level, the stock saw some correction and then took support of 20-DMA around 114. The price has given a sharp pullback to make the new 52-week high and closed at a higher level.

Bulls are having the upper hand as the trend is on the upside and a higher level can be seen. The stock is also trading above all major averages of 20 DMA, 50 DMA and 200 DMA which is a positive sign.

The Stochastics Oscillator is moving in an upward trend along with an increase in volume, indicating further upside move from here.Hence, one can buy at the current level and more at dips of 111 with an SL of 103 on a weekly closing basis and the upside can see a level of 150 to 170 in the next 10-12 months.

TVS Motor – Buy
After making lows around 1005 in March 2023, the price witnessed a sharp bull run to make an all-time high of 1384 odd levels.

Buyers were having the upper hand against the bears, as shown by the formation of the Higher Top Higher Bottom pattern. In the last 30-35 days, we can see the price moving in a range of 1289-1384 and yesterday’s relatively high volume price breached the consolidation phase, signalling further upside.

Price is currently trading above its 20 EMA and 40 EMA of 1333 and 1313 indicating bulls have a major role at the current level. The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating further upside move from here.

Hence, one can buy at the current level and more at dips of 1320 with an SL of 1270 on a weekly closing basis and the upside can see a level of 1520 to 1700 in the next 10-12 months.

DCM Shriram – Sell
After making lows around 727 in March 2023, the price has witnessed a bull run to make a high of 947 odd levels. Buyers had the upper hand against the bears as the price was moving in an uptrend.

At a higher level price was moving in the range of 876-947 and yesterday’s relatively high volume price breached the distribution phase and closed below the lower level of range, signalling further downside.

Price is currently trading below its 50 DMA and 200 DMA of 871 and 877 indicating bears have a major role at the current level. The stock is currently facing more selling pressure and can test the support around 770 and further down to 720 odd levels.

The Stochastics Oscillator is trading in a downward trend indicating further downside from here.

Hence, one can sell at the current level and more on the rise to 900 with an SL of 950 on a weekly closing basis and on the downside can see a level of 700 to 500 in the next 3-4 months.

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