Big Movers on D-St: What should investors do with GE Shipping, Kalyan Jewellers and Deepak Fertilisers?

Indian market closed higher on Tuesday after a two-day decline. The S&P BSE Sensex rallied by nearly 400 points while the Nifty50 closed above 17600 levels.

Sectorally, metal, auto, public sector, consumer durables, and energy attracted buying interest while some selling was seen in IT stocks.

Stocks which were in focus included GE Shipping which rose more than 6 per cent, Kalyan Jewellers which gained nearly 10 per cent, and Deepak Fertilisers which rose 5 per cent.

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

Great Eastern Shipping: Buy
On a longer-term chart, after making a low of Rs 265 in December 2021, the stock has given a sharp upside rally to make an all-time high of Rs 527 in August 2022.

During this period, the volume was high and prices made Higher Top and Higher Bottom patterns. For the next 10-15 days, the stock moved in the range of Rs 500-527 odd levels. On Tuesday it breached the range on the higher side with high volumes.

Stochastics Oscillators are moving in an upward trend along with an increase in volume indicating further upside with limited downside risk.

One can buy the stock at the current level and more on dips to Rs 505 for higher levels of Rs 650-725 in the next 6-8 months.

Hence, we recommend investors buy the stock at the current level and more on dips of Rs 505 with a stop loss of Rs 470 on a weekly closing basis. The upside could be in the range of Rs 650-725 in the next 6-8 months.

Kalyan Jewellers: Buy
On the daily chart, we can see that after making a double bottom pattern around Rs 55, the stock has witnessed a sharp bull run to make a high of Rs 73.35 in August 2021.

In this upward rally, the price made a Higher Top Higher Bottom pattern and volumes were also good. In the last 10-15 days, the price has moved in the range of forming a Descending Triangle Pattern with multiple bottoms around Rs 70 and faced resistance at every lower top.

On Tuesday, with relatively high volume, the price breached the pattern on the higher side and a close above which indicates further upside from hereon.

Stochastics Oscillator moving in an upward trend, along with an increase in volume, is indicating an upside move with limited downside risk. One can buy at the current level and more on dips of Rs 72 for the upside level of Rs 90-100 in the next 6-8 months.

Hence, we recommend buying at the current level and more on dips of Rs 72 with a stop loss of Rs 68 on the weekly closing basis and the upside can be seen around Rs 90-100 in the next 6-8 months.

Deepak Fertilisers: Buy
After taking support above 200-DMA at Rs 337 on a longer-term chart, the price has given an upside move to make a high of Rs 725 in April 2022. Volumes were good during this period.

For the next 3 months, the price moved sideways, consolidating in the range and in August months, the stock witnessed a sharp bull run to make an all-time high of Rs 977.

Currently, the stock is highly overvalued as we can see Stochastics Oscillators are moving in an overbought zone and we can witness some selloff.

Anyone who has this stock can book profit at this level and wait for some correction to re-enter again at around Rs 900.

Hence, we recommend waiting for some correction and buying at lower levels of Rs 900 and more at dips of Rs 850 with a stop loss of Rs 800 on a weekly closing basis. The upside can be seen around Rs 1100-1250 in the next 8-10 months.

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