Stocks that were in focus include names like Amara Raja Batteries, which fell over 6%, Happiest Minds, whose shares declined 6.17%, and LTIMindtree, which also dropped 2.63% 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:
Amara Raja Batteries – Buy on Dips
After making multiple bottoms around Rs 546 in March 2023, the price witnessed a bull run to make a 52-week high at 709 odd levels.
Buyers had the upper hand against the bears as we can see the formation of a Higher Top Higher Bottom pattern. In the last 12-15 days, price has been moving in the range of 674-8709 and with relatively high volumes. The price has breached the distribution phase and closed below the lower level of range, signifying further downside.
Price is currently trading below its 20 EMA and 40 EMA of 670 and 653, indicating the bears would play a major role at the current level. It can test the support of the upward-moving trend line around 600 and from there, the rebound can be seen to retest its previous high of 709 odd level. Once the 709 level is taken out, we can see further upside till 780 to 850 odd levels.
Hence, one can buy at dips of 620 and more at a further downside level of 580 with an SL of 540 on a weekly closing basis and on the upside, we can see a level of 750 to 850 in the next 10-12 months.Happiest Minds – Sell
On the daily charts, after making a bottom around 760 in March 2023, the price has given a sharp upside rally to make a high around 1020 odd levels.
Bulls have the upper hand as the stock has formed a Higher Top Higher Bottom pattern. At a higher level, the price is moving in the range of 945-1020 levels. On Tuesday, with relatively high volumes, the price breached the distribution phase and closed below the lower level of range. From here, some more downside is likely.
Price is also trading below its upward-moving trend line, indicating further downside. The Stochastics Oscillator is trading in a downward trend, indicating further downside from here.
Hence, one can sell at the current level and more at a rise of 980 with an SL of 1030 on a weekly closing basis and the downside can see a level of 800 to 700 in the next 3-4 months.
LTIMindtree – Buy
After making a high around 5400, the price has given a sharp correction as it took only 6 days to make a low of 4776 odd level.
Sellers were in full control over price. After falling almost 15% from its higher level, the price saw some pullback till 5300 odd level and witnessed a steep fall till 5070 as buyers were not able to take the price over its previous highs.
At the current level, the price can move a little bit sideways in a range of 4800 to 5200 and once it goes above the 5200 odd level we can see a sharp upmove till 5700 to 6000.
The stock is currently trading above its 20 EMA and 40 EMA, respectively, indicating the bulls will play a major role in taking the price higher. The Stochastics Oscillator is trading in an upward trend along with an increase in volume indicating further upside.
Hence, one can buy at the current level and more at a rise of 4800 with an SL of 4600 on a weekly closing basis and on the upside can see a level of 5700 to 6000 in the next 8-10 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)