Big Movers on D-St: What should investors do with Mahanagar Gas, IGL and Firstsource Solutions?

Indian market closed mixed on Tuesday tracking muted global cues. The S&P BSE Sensex closed flat while the Nifty50 managed to hold on to 18250 levels.

Sectorally, buying was seen in telecom, IT, and auto while selling was seen in public sector, utilities, and realty stocks.

Stocks that were in focus include names like Mahanagar Gas which was up more than 7%, Indraprastha Gas which closed with gains of over 2% and Firstsource Solutions which ended with gains of over 10% on Tuesday.

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

MGL: Buy
After making double bottom around 645 odd levels on the weekly charts, the price gave a sharp up move to make a 52-week high of 1072 odd levels.

The price has made a Higher Top Higher Bottom pattern. The stock is trading at 52-week high which gives an indication that bulls are in control. In the near term, the stock can go further up to 1100 to 1150 odd levels.

The stock is moving above all three major averages of 20-WMA, 50-WMA, and 200-WMA, which is a good sign.

On the higher side, the stock can face resistance around 1100 levels from where some profit booking can be seen to till supports of 1020 and 970.

A close above 1100 can push the stock towards 1150 to 1250 levels. The Stochastics oscillator is also moving in an upward trend along with an increase in volume, indicating further upside from here.

Hence, one can buy at the current level and more at dips of 1020 with a stop loss of 970 on a weekly closing basis. On the upside, we could see a level of 1150-1250 in the next 6-8 months.

IGL: Buy
After consolidating in a range of 378-440 odd levels, the price witnessed a sharp bull run to make a new high of 515 levels on the daily charts.

Volumes were quite high during this upward move. As the stock is trading at a 52-week high we can see more upside from here. The stock has also taken support of 20 DMA around 480.

The stock can face some resistance around 535 from where we can see some correction till 480 to 460 odd levels.

For medium to long-term investors, the stock looks good on the chart, and on the upside, we can see levels of 570-600 odd levels.

The Stochastics oscillator is also moving in an upward trend along with an increase in volume, indicating further upside from here.

Hence, one can buy at the current level and more at dips of 480 with a stop loss of 460 on a weekly closing basis, and on the upside, we could see the level of 535-570 in the next 6-8 months.

FSL: Buy
After moving in the range of 100 to 120 odd levels on the daily charts, the price witnessed a sharp up move to make a 52-week high of around 128 odd levels.

Price is currently moving in an upward trend as the stock has risen 14% from the previous week's close of 113. Bulls are having full control and more upside can be seen from here.

The stock is moving above all three major averages of 20 DMA, 50 DMA, and 200 DMA which is a good sign for upside.

The RSI Oscillator is also moving above its reference line along with an increase in volume indicating further upside from here. Nearby resistance is around 136 above which further upside can be seen to 165-180 odd levels.

Hence, one can buy at the current level and more at dips of 118 with a stop loss of 108 on a weekly closing basis, and on the upside, we could see level of 165-180 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)