Big Movers on D-St: What should investors do with Adani Power, AIA Engineering and InfoEdge?

Indian market snapped 3-day winning streak and closed in the red on Tuesday. The S&P BSE Sensex fell more than 350 points while the Nifty50 closed below 16,600 levels.

Sectorally, selling pressure was seen in power, utilities, banks, oil & gas, and finance stocks while some buying was seen in realty, metals, and consumer discretionary counters.

Stocks that were in focus included Adani Power which fell by about 5 per cent, AIA Engineering which rose more than 7 per cent, and Info Edge which surged more than 9 per cent on Tuesday.

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

Adani Power: Buy on dips
After consolidating for 9 months from June 2021 to March 2022 in a range of Rs 70-130 odd levels and with relatively high volumes, the price breached the range on the higher side to make an all-time high of Rs 344.5.

During this upward move, the price has made a Higher Top and Higher Bottom pattern. The stock is also trading above the 20-DMA and 50-DMA of Rs 291 and Rs 244 odd levels.

Currently, the stock is trading at an all-time high and from here some correction can be expected till Rs 290 odd levels.

As the stock is overvalued at this level, we will wait for correction and on dips, we can buy for a further upside till Rs 400-460 in the next 6-8 months.

Hence, we recommend buying at dips of Rs 291 and further around Rs 270 with a stop loss of Rs 240 on a closing basis and we can see the level of Rs 400-460 on the upside in next 6-8 months.

AIA Engineering: Buy on dips
From a low of Rs 1,475 in March 2022, the stock has given some upside rally to hit Rs 2,020 level in May 2022. Volumes were high during this period.

Price corrected from a higher level to retrace 50% of the previous rally and make multiple bottoms around Rs 1,755. At a lower level, the price took the support of the upward moving trend line, and with good volume, it breached the 200-DMA level of Rs 1,860 to make an all-time high of Rs 2,080.

We can also witness the support of 50-DMA at a lower level. As it has already given a 20% upward move, it is advisable to not enter at the current level.

At the current level, the price is overbought and from here some correction can be seen at lower levels; fresh entry can be made for a new high of Rs 2,500-2,800 in the next 6-8 months

Hence, we recommend to wait for some correction and buy on dips of Rs 2,000 and further down till Rs 1,850 with a stop loss of Rs 1,750 on a closing basis for an upside level of Rs 2,500-2,800 odd levels.

Naukri (Info Edge): Buy
After making an all-time high of Rs 7,465 in October 2021, the stock has corrected to make an 18-month low at Rs 3,313 odd level. Price has made a Lower Top Lower Bottom Pattern during this period.

The stock price is currently trading in Parallel Channel and at lower levels, after taking support of trend line with higher volume, the stock has given upside move.

The price is currently trading below the 50-DMA of Rs 4,256 and once it goes above this level, we can see further upside to Rs 4,600-4,850.

Hence, we recommend buying at the current level and more at dips at Rs 3,900, with a stop loss of Rs 3,600 on a closing basis for an upside target of Rs 4,600-4,800 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)