Among the stocks in focus were Tata Motors, up 0.93 per cent, Adani Wilmar, up 1.92 per cent and PC Jewellers, whose shares surged 10 per cent on Monday.
Here’s what Kushal Gandhi, technical analyst at StoxBox, recommends for investors to do with these stocks when markets resume trading today:
Tata Motors
Tata Motors shares have risen 182% in the past one year and have entered a consolidation phase, showing resilience to sub-20% declines. This indicates experienced investors are maintaining their positions and the current accumulation phase indicates additional buyers, reinforcing the primary trend.
These are positive indicators: the stock’s EPS strength is improving and demand from buyers is also increasing.
Moreover, with the price hovering near the support of the short-term daily and weekly moving averages, there is a low-risk, high-reward investment opportunity. We recommend buying Tata Motors with a target price of 1,170 and a protective stop of 964.
Adani Wilmar
Adani Wilmar’s price movement has been showing a downtrend over the years. During the downtrend, it has not consistently crossed any key resistance levels and has shown a corrective rise of 67%.
With the 50-week moving average acting as a strong resistance overhead and weak earnings per share and share price strength, we would recommend avoiding buying this stock.
PC Jewelers
The price action of PC Jewellers has bounced back significantly from its 50-day moving average and has seen support levels rise to 54.70.
The stock has been trading inside a wide range of 34%. On the upside, the 57 level is a strong resistance and a decisive breakout above this level on a closing basis would enable the price action to maintain the current momentum.
The RSI levels on the daily and higher timeframes are significantly above their medians, indicating that the price may see a strong upside. Based on this analysis, we suggest buying PC Jewellers with a target price of 64.50 and a stop loss of 54.65.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of the Economic Times)
