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    Big Movers on D-St: What should investors do with Elgi Equipments, Asahi India Glass and Cummins India?

    Synopsis

    On a longer-term chart from April 2021 to November 2021, the price has moved in a range of Rs 195-232 odd levels. Once it breached the consolidation phase, the price gave a sharp upside rally to make an all-time high of Rs 422 level in February 2022.

    Big Movers on D-St: What should investors do with Elgi Equipments, Asahi India Glass and Cummins India?Agencies
    Indian market closed lower on Tuesday amid profit booking seen in the second half of the session. The S&P BSE Sensex fell by over 100 points while the Nifty50 failed to hold on to 16,000 levels.

    Sectorally, buying was seen in power, utilities, metals, healthcare, and oil & gas stocks while some selling was visible in IT, banks, auto, and realty.

    Stocks that were in focus included names like Elgi Equipments which rose over 8 per cent, Asahi India Glass which rose over 6 per cent, and Cummins India which closed with gains of over 2 per cent on Tuesday.

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

    Elgi Equipments: Buy| Target: Rs 450-490| 6-8 months
    On a longer-term chart from April 2021 to November 2021, the price has moved in a range of Rs 195-232 odd levels. Once it breached the consolidation phase, the price gave a sharp upside rally to make an all-time high of Rs 422 level in February 2022.

    Volumes were quite high during this period. From a high of Rs 422, the price witnessed a sharp selloff as it retraced almost 90% of the previous rally to make a low of around Rs 248 odd levels.

    In the last two months, we have seen the price to face resistance near the all-time high at Rs 422 and correct to form a Flag pattern.

    The stock is currently looking positive and once it goes above the Rs 390 odd level, we can see a sharp upside rally till Rs 450-490 level in the next 6-8 months.

    Hence, we recommend buying at this level and more on dips towards Rs 355 with a stop loss placed below Rs 330 on a closing basis. On the upside, we can see a level of Rs 450-490 in the next 6-8 months.

    Asahi India Glass: Buy only on dips| Target: Rs 630-660
    On a longer-term chart after making a low of around Rs 119 in March 2020, the stock has given a sharp bull run to make it to an all-time high of Rs 620 in January 2022.

    The stock has made a Higher Top Higher Bottom Pattern during this period. From highs, the price has witnessed some profit booking as it retraced almost 45% of the previous rally to make a low of around Rs 382 odd levels.

    From March 2022 to June 2022, the stock moved in a range of Rs 382-485, and with a relatively higher volume price breached the pattern on the higher side and continued its upward rally to make a high of Rs 583.

    Currently, it is overvalued, and one should wait for a fresh entry. Anything around the Rs 530-500 level is a good buy price for a higher target of Rs 630-660.

    Hence, we recommend to wait at the current level and enter at dips of Rs 530–500 with a stop loss of Rs 450 on a closing basis, and upside we can see levels of Rs 630-660 odd levels in the next 6 to 8 months.

    Cummins India: Buy| Target: Rs 1165-1255| 6-8 months
    On the weekly chart, after making a low of around Rs 280 in April 20, the stock has given a sharp upside rally to make a 7-year high of Rs 1163 on April 22.

    In this rally, the price rose vertically. From February 2021 to till-date price is moving in Upward Parallel Channel taking support at every Higher Bottom and facing resistance at every Higher Top.

    In the last 2 weeks, the stock has taken support at Rs 950 and with relatively higher volume moving above the 21-EMA of Rs 1006 and closing above that indicates further upside till Rs 1250.

    Hence, we recommend buying at this level and more at dips of Rs 985 with a stop loss of Rs 940 on a closing basis and upside we can see the level of Rs 1165-1255 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)






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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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