tata motors share price: Big Movers on D-St: What should investors do with Tata Motors, L&T and Indian Hotels?
Sectorally, buying was seen in auto, IT, metal, realty and oil & gas while selling pressure was visible in banking, financial services and FMCG.
Stocks that were in focus include names like Tata Motors which rose more than 5%, Larsen & Toubro which hit a fresh 52-week high and The Indian Hotels Company Technologies which gained nearly half a per cent on Monday.
Here’s what Jatin Gohil, Technical & Derivatives Research Analyst at Reliance Securities Ltd recommends investors should do with these stocks when the market resumes trading today:
Tata Motors: Cautious view
On 10th Apr’23, the stock extended gain post a gap-up opening amidst positive news flow. On the daily chart, the stock reversed from 7-month high forming a longer tail formation.
In the past, the stock failed to witness a strong follow-up move after such a gap-up rally and filled the positive gap subsequently with a gradual decline. The key technical indicators tested the overbought zone and in the absence of a follow-up move, they may reverse down.
Hence, we are cautious for a short-term long trade.
L&T – Buy on dips
Continuing its prior daily rising trend, the stock surpassed its prior swing high of Rs 2,298 convincingly and rose to new lifetime-high of Rs 2,320.
Due to consecutive rise in the stock, its key technical indicators tested the overbought zone on a near-term time frame chart. As per the current set-up, the stock may witness near-term decline towards Rs 2,260-2,240 zone before a fresh up-move.
Hence, fresh long position can be initiated on dips for probable rise towards Rs 2,350 initially and Rs 2,400 subsequently.
Indian Hotels – Buy
The stock retraced 50% of the prior up-move (Rs 207-348) in late-Jan’23. After taking support of its upward-sloping 50-week EMA, it resumed its northward journey.
In late-Feb’23, the stock witnessed a breakout from the continuation pattern-Bullish flag and remained above the upper band of the flag subsequently. We believe the stock will bounce utilizing prior consolidation.
On the higher side, the stock may face hurdle around its lifetime-high before a fresh up-move. Upward sloping moving averages and positively poised technical indicators signal the stock is poised to explore uncharted territory, which could lead it towards the breakout point (Rs 418) of Bullish Flag pattern.
In case the stock violates its upper band of the flag (Rs 290), probable up-move will be negated.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
