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    Big Movers on D-St: What should investors do with Power Grid, Hind Copper and Motherson Sumi?

    Synopsis

    Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

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    Indian market closed in the red on Monday for the second consecutive day in a row. After opening with a gap-down tracking weak global cues, benchmark indices managed to recoup some losses towards the close of the trade.

    The S&P BSE Sensex fell 364 points while the Nifty50 managed to hold on to 16,300 levels.

    Sectorally, buying was seen in telecom and IT stocks while selling pressure was visible in power, utilities, energy, and oil & gas stocks.

    Stocks that were in focus include names like Power Grid which bucked the trend and hit a fresh 52-week high, Hindustan Copper fell nearly 10 per cent, and Motherson Sumi was down over 4 per cent to hit a fresh low of Rs 117.35 on Monday.

    Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

    Power Grid: Recommendation: Buy on dips | Target: Rs280 | Stop Loss: Rs221.50 | Time Duration: 3-4 weeks
    Continuing its prior rising trend, the stock recorded a new high of Rs246.45. A spike in volume and rise in future OI (Open Interest) signals that major participants were in favor of bulls.

    All the moving averages are sloping upwards. We believe that the stock will keep exploring uncharted territory. This could lead the stock towards Rs265 initially and Rs280 subsequently.

    In case of decline, the stock will find support around prior swing low, which is placed at Rs221.50.

    Hind Copper: Recommendation: Sell on rise | Target: Rs69 | Stop Loss: Rs120 | Time Duration: 1-2 Months
    On 9th May’22, the stock violated its medium-term support zone, which was placed between Rs108 and Rs105.

    The above-average volume indicates that major market participants were in favor of bears. The key technical indicators are negatively poised on medium-term as well as short-term timeframe charts.

    This could drag the stock towards Rs75 initially and Rs69 subsequently. On the higher side, the stock will face hurdles at around Rs120.

    Motherson Sumi: Recommendation: Sell on rise | Target: Rs90 | Stop Loss: Rs140 | Time Duration: 5-6 Weeks
    Since 2nd May’22, the stock remained in pressure and extended loss subsequently. Yesterday, the stock slipped to 15-month low of Rs117.35 amidst fifth consecutive downticks on the daily chart.

    The stock is trading below its key moving averages (i.e. 20-50-100-200 day as well as week moving averages).

    We believe that undergoing negative momentum will continue, which could drag the stock towards Rs107-102-90. In case of a pullback, the stock will face a hurdle around Rs135-140 zone.

    (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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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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