Big Movers on D-Street: What should investors do with TCS, IDBI Bank & HG Infra Engineering?

Domestic equity markets closed in the red for the third consecutive day on Friday tracking weak global cues. The S&P BSE Sensex fell more than 450 points, while the Nifty50 closed below the 17,900 level.

Sectorally, buying was seen in FMCG while selling was visible in IT, metals, banks, and healthcare.

Stocks that were in focus include names like TCS was down nearly 3% ahead of Q3 results scheduled on Monday, IDBI Bank rose nearly 8%, and HG Infra rose more than 3% on Friday.

Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart. at recommends investors should do with these stocks when the market resumes trading today:

TCS: Short Covering
TCS has been trading in a broad range of Rs 3,500–3,000 for more than 8 months, and currently, it is trading in the middle of the range with a negative technical structure, which opens the risk of a retest of the Rs 3,000 level. On the upside, the cluster of moving averages around Rs 3,300 represents an immediate barrier; above this, we can expect a short covering move towards Rs 3,500. Momentum indicators are negatively poised to support the current weakness.

IDBI Bank: Buy
The counter has witnessed a breakout of inverse head & shoulder on the weekly timeframe. But it has given a meaningful correction to retest the previous breakout level of Rs 108. Now it is starting the next leg of a rally towards Rs 65. On the daily chart, it has given a V-shaped recovery from the last breakout level Rs 52-53 with huge volume. The overall structure of the counter is also very impressive, as it is trading above all its important moving averages. The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside. On the higher side, Rs 65 is acting as an important psychological level; above this, we can expect a level of Rs 68+ in the near-short term, while on the lower side, Rs 53 will act as a major support during any correction.

HG Infra: Buy
The counter has witnessed a breakout of a long period of consolidation as it has retested its previous breakout level of Rs. 500 after hitting a fresh 52-week high. On the upside, Rs 700 is a susceptible area; above this, we can expect a run-up towards Rs 800+ levels in the near term. On the downside, Rs 580 is major support during any correction. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.

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