Big movers on D-Street: What should investors do with Tata Consumer, Polycab and HDFC AMC?

Big movers on D-Street: What should investors do with Tata Consumer, Polycab and HDFC AMC?

Benchmark indices surged to their fresh all-time highs on Friday, driven by a sharp rally in IT stocks. The 30-share Sensex jumped 999 points to reach a new record of 72,721 and the Nifty climbed 281 points to reach its fresh record peak of 21,928.

Stocks that were in focus included names like Tata Consumer, which rose 3.11%, Polycab, which gained 2.63%, and HDFC AMC, whose shares declined 1.1% on Friday.

Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.

Tata Consumer

It has witnessed a breakout of a triangle formation on the longer timeframe with a strong volume and successfully closed above Rs. 800 levels. After that, it formed a higher high and higher low formation. On the daily timeframe, it has given a breakout of flag formation with strong volume. The structure of the counter is good for long-term investors as it is trading above its important moving averages (50, 100, and 200-DMA).

The momentum indicator RSI (relative strength index) is indicating positive momentum, and the MACD (moving average convergence and divergence) is undergoing a bullish centerline crossover.

On the upside, Rs 1200 is a significant psychological level. A breach of this level could propel the stock to Rs 1250 or higher in the near-term. Conversely, on the downside, Rs 1070 is identified as a major support level that is likely to provide a strong cushion during any corrective moves.

Polycab

It is trading below 200-SMA and trading at around Rs 3980. The structure of the counter is distorted as it is trading above all its important moving averages.

On the higher side, Rs 4400 is acting as an important psychological level; above this, we can expect the level of Rs 5000+ in the near-short term, while on the lower side, Rs 3800 will act as a major support during any correction. Investors and traders should avoid such stocks for taking positions.

HDFC AMC

It is in a classical upward move, and the overall structure of the counter is very lucrative, as it is trading above all its important moving averages and is also forming higher highs and higher lows. The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.

On the higher side, Rs 3600 is acting as an important psychological level; above this, we can expect the level of Rs 3800+ in the near-short term, while on the lower side, Rs 3150 will act as a major support during any correction.

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

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