Big Movers on D-St: What should investors do with HPCL, Adani Enterprises and Adani Wilmar?
Sectorally, selling pressure was seen in energy, oil & gas, auto, finance, and metal stocks while buying was seen in realty, capital goods, power, and utilities.
Stocks that were in focus included names like
which was down by nearly 6 per cent, which rose more than 5 per cent, and which rallied nearly 5 per cent on Monday
Here’s what Viral Chheda, Technical Analyst, SAJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:
HPCL: Sell on Rally
After making a 3-year high of Rs 354.8 in November 2021, the price has given a sharp selloff to trade around Rs 215 odd level. The stock has made a Lower Top Lower Bottom Pattern during this period.
From February 2021 to till date, we have seen the price to make a Head and Shoulder Pattern with neckline stand at Rs 225 odd levels.
In the current week, the price has breached the pattern with high volume on the lower side and from here we can see further downside till Rs 200-180 odd levels.
More selling pressure can be witnessed at this level and hence we would recommend selling the stock on every rise at every higher level.
A close above the Rs 255 level could add some stability to the stock and then we could see some upside. But, the bias is in favour of more downside.
We recommend investors avoid buying at this level and sell on rise around Rs 235-240 odd level for a downside target of Rs 200 – 180 in the next 3-4 months.
Adani Enterprises: Buy
From lows of Rs 121 in March 2020, the stock has given a sharp upside rally to make an all-time high of Rs 1,908 in January 2022. Volumes were quite high during this period.
From a high of Rs 1,908, the price corrected to take support at 50-WMA at Rs 1,525 and gave a sharp upside rally to make a new all-time high of Rs 2,421-odd level.
Currently, after moving in the range of mere 300 points for the past 2 months, with relatively higher volume, the price has now breached the range on the higher side and from here we can see the stock making a new high.
Price is also moving above major averages which is a good sign for a bull run.
Hence, we recommend investors to buy at this level and more on dips towards Rs 1,900 with a stop loss of Rs 1,700 on a closing basis. On the upside, we can see levels of Rs 2,600-3,000 odd levels in the next 8-10 months.
Adani Wilmar: Buy
At the time of listing, the stock opened below the offer price to make a low of Rs 227 and from there we saw a sharp upside rally of 190 points in that particular week.
From 12 Feb 2022 to 25 Mar 2022, the price moved in a consolidation phase and once it breached the range on the higher side, the price gave an upward move to make an all-time high of Rs 878-odd levels.
From a high of Rs 878, the price retraced almost 52% of the previous rally to make a low around Rs 540 and currently, it is moving at Rs 615-odd level.
We can see further upside till Rs 850-1000 levels. At the current level, we can see positive divergence and once it goes above 50-DMA of Rs 660, a sharp upward move can be seen.
Hence, we recommend buying at this level and more at dips of Rs 540 with a stop loss of Rs 470 on a closing basis for a target of Rs 900-1,100 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)
