Big Movers on D-St: What should investors do with this Jhunjhunwala-owned stock, Adani Transmission and Berger Paints?

Indian market recouped losses and closed in the green on Tuesday for the fifth consecutive day. The S&P BSE Sensex closed above 58,100 while the Nifty50 closed flat but above 17,300 levels.

Sectorally, buying was seen in power, utilities, public sector, consumer discretionary, and FMCG while some selling was seen in realty, IT, capital goods, and metals.

Stocks that were in focus include Federal Bank, Rakesh Jhunjhunwala-owned stock, which hit a fresh 52-week high and closed with gains of more than 3 per cent.

Additionally, Adani Transmission rose nearly 7 per cent, and Berger Paints closed with gains of more than 3 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:

Federal Bank: Wait for dips| Buy near Rs 95
On a longer-term chart after making a low of Rs 35.7 in March 2020, the stock has given a sharp upside rally to make a two-year high of Rs 102.7 in November 2021.

During this period volume was high and the price was also making a Higher Top and Higher Bottom pattern which is a positive sign.

For the next eight months, the stock moved in a range of Rs 78-102 odd levels. After making multiple bottoms around Rs 80, the stock has given a sharp upside rally to breach the range and made a 4-year high of Rs 110 odd level.

RSI Oscillator is showing positive divergence. Currently, prices are moving in an overbought zone and it will be risky to buy at this level.

Our opinion is to wait for a fresh entry. Let the stock correct till Rs 95 odd levels and then we can buy for higher levels of Rs 130-150 in the next 6-8 months.

Hence, we recommend waiting for some correction and then buying at lower levels of Rs 95 and more on dips of Rs 85 with a stop loss of Rs 75 on a weekly closing basis on the upside, we can see levels of Rs 130-150 in the next 6-8 months.

Adani Transmission: Book Profits
From the lows of Rs 290 in November 2020, the stock has witnessed a sharp bull run to make an all-time high of Rs 3,000 in April 2022.

Volumes were high and the prices also formed a higher top higher bottom pattern.

From highs of Rs 3,000, the price has given some correction to make a low of Rs 1,870 odd level. At this lower level, the price has taken support of the upward-moving trend line which has taken support from every higher bottom.

RSI Oscillator has shown positive divergence at a lower level and from this support, the level price has moved upwards to make an all-time high of Rs 3,417 odd levels.

Currently, the price is moving near the resistance level of Rs 3,450-3,500 and from here we can witness some correction till Rs 2,500- 2,300 odd level.

Anyone who has this stock can book profit at this level and wait for some correction to re-enter again around Rs 2,500.

Hence, we recommend investors to wait for some correction and buy at lower levels of Rs 2,500 and more on dips toward Rs 2,300 with a stop loss of Rs 2,100 on a weekly closing basis. On the upside, we can see levels of Rs 3,500-4,000 in the next 8-10 months.

Berger Paints: Buy
After making a low of Rs 389 in March 2020 on the weekly charts, the stock has given a sharp upside rally to make an all-time high of Rs 873 in July 2021.

From highs, the price has witnessed selling pressure as it retraced almost 68% of the previous rally to make a low of Rs 543 odd levels.

In the last 8-10 weeks, the price has moved in a range forming an Ascending Triangle Pattern taking support of higher bottoms but faced resistance near multiple tops at Rs 606 in the previous week with relatively higher volume.

Price has now breached the pattern and a close above the same indicates a further upside rally. The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating upward movement with limited downside risk.

One can buy at the current price and more on dips of Rs 590 for an upside level of Rs 720-790 in the next 6-8 months.

Hence, we recommend buying at this level and more on dips towards Rs 590 with a stop loss of Rs 560 on a weekly closing basis. On the upside, we can see a level of Rs 720-790 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)