Big movers on D-Street: What should investors do with M&M, Vedanta and NTPC?

Big movers on D-Street: What should investors do with M&M, Vedanta and NTPC?

Equity indices climbed for a third straight day amid positive global cues. The 30-share Sensex rose 227 points to close at 72,050 and the broader NSE Nifty also gained 70 points to end at 21,910.

Stocks that were in focus included names like M&M, which rose 6.81%, Vedanta, which declined 4.17%, and NTPC, whose shares jumped 3.92% on Thursday.

Here’s what Viral Chheda, Sr Technical Analyst, SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today.

M&M – Buy

In the daily chart after making the low around 1450 in Nov 2023, price has witnessed a sharp Bull Run to make an all time high of 1758 odd levels. Volumes were on rise as buyers were having full control on price. In the last 20-25 days price has moved in the range of 1575-1758 level and today with high volume price has breached the consolidation phase and moving above that level indicating further upside from here. 20 DMA is on the verge to cut 50 DMA from downside makes the price more stronger for upside move.

The Stochastic Oscillator is also moving in an upward trend along with an increase in volume indicating further upside rally with limited downside risk.

Hence one can buy at current level and more at dips of 1660 with SL of 1570 on weekly closing basis and upside can be seen till 2100-2400 in next 10-12 months.

Vedanta – Avoid

In the daily chart after making double bottom around 200 in Sept 2023, price has given a sharp upside rally to make an all time high of 286 odd levels. Price has given almost 42% returns from its lower level as buyers were having upper hand on the price. Price moved sideways for some days and in the current week after facing resistance of previous higher level, stock has given a sharp correction to make a low of 267 odd levels.

Stock has a support around 258, once this level is taken out we can see fall till 240. On the higher side above 288 we can see further upside till 320-350. The Stochastics Oscillator is also moving in the downward trend.

Hence one can avoid buying at current levels and can buy at dips of 260 and more at dips of 250 with SL of 235 on weekly closing basis and upside can be seen till 320-350 in next 10-12 months.

NTPC – Buy

In the daily we can see that after making the low around 224 in Oct 2023, price has witnessed a sharp Bull Run to make an all time high of 338 odd levels. Price has given almost 51% returned from its lower level as Bulls were having upper hand over bears. From the highs, the price has given some profit booking to make the low around 314 odd levels.

After taking the support of 20 DMA at 316, price has given some pull back and today with high volume price has breached the previous higher level and trading at an all time high indicates further upside from here. The Stochastics Oscillator is also moving in an upward trend along with an increase in volume indicating an upside rally from here.

Hence one can buy at current level and more at dips of 315 with SL of 290 on weekly closing basis and upside can be seen till 425-500 in next 10-12 months.

(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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