Big Movers on D-St: What should investors do with EIH, M&M Financial and Tata Steel?

The Indian market closed in the red on Friday tracking weak global cues. The S&P BSE Sensex plunged more than 1,000 points, while the Nifty50 broke below 17,400 levels.

Sectorally, selling was seen in utilities, power, realty, public sector, and banks. Stocks that were in focus included names like EIH, which rose over a per cent and is trading near 52-week highs, M&M Financial, which fell more than 13 per cent, and Tata Steel, which rose 0.5 per cent on Friday.

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

EIH: Buy
The counter has given a breakout from a bullish inverse Head & Shoulder formation on the daily chart; however, it has given a meaningful correction to retest the previous breakout level of 180.

Now, it is starting the next leg of a rally where Rs 210 is an immediate multi-month resistance level. We are expecting a move towards the Rs 230 level if the stock manages to close above Rs 210. On the downside, Rs 175 is major support for any correction.

M&M Financial: Avoid
The counter gave a major breakdown from the 52-week high after making a gravestone Doji candle on the daily chart. In Friday’s trading session, the counter has broken below important moving averages (9, 20, 44-Days SMA).

Presently, the stock has taken support from its last breakout level of around Rs 190 at 100-SMA. On the downside, Rs 180 is the important support in the near term, while on the upside, Rs 220 is the susceptible area.

Tata Steel: 100 will act as support
The counter has been in the consolidation phase for the last two months and has taken support around its 100-SMA. It is facing trend line resistance on the daily chart.

On the upside, it is having resistance around Rs 110-112 levels; above this, we can expect a move towards Rs 125 level. On the downside, Rs 100 is the psychological support level.

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