Big Movers on D-St: What should investors do with Jindal Steel, Tata Steel and FACT?

Indian market closed in the green on Tuesday for the second consecutive. The S&P BSE Sensex closed with gains of more than 360 points while the Nifty50 reclaimed 18100 levels.

Sectorally, buying was seen in metals, telecom, capital goods, and realty while selling was seen in FMCG stocks.

Stocks that were in focus include names like Jindal Steel & Power which closed with gains of over 9%, Tata Steel which gained nearly 6%, and Fertilizers and Chemicals Travancore which closed with gains of 10% 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:

Jindal Steel: Buy
From the low of Rs 386 odd level in September 2022, the stock has given a sharp up move to make a 10-year high of Rs 573 on the daily charts.

The stock has been making a Higher Top Higher Bottom pattern along with strong volumes. From high, the price witnessed some profit booking as it corrected to a low of Rs 520 odd levels.

After making a double bottom around Rs 520 odd levels with high volumes, the price gave a sharp pullback and closed at an all-time high level so far this week.

We can see further upside from here. The Stochastics Oscillator is also moving in an upward trend and the price is moving above its major averages which is a good sign for upward move.

One can buy at this level and more on dips towards Rs 530 with a stop loss placed below Rs 500 on a weekly closing basis. On the upside, we can see levels of Rs 640-700 in the next 6-8 months.

Tata Steel: Buy
After making a low of around Rs 95 in September 2022, the stock has given a sharp up move to make a high of Rs 116 odd levels. The stock has made a Higher Top Higher Bottom pattern along with strong volumes.

From the high, the price witnessed some selling pressure as it retraced almost 70% of the previous rally to make a low of Rs 101.5 odd levels.

The stock made a low of Rs 101.5 this week with high volumes as price gave a sharp pullback and closed above the 20-DMA of Rs 110.

We can see further upside from here. The Stochastics Oscillator is also moving in an upward trend along with an increase in volume which indicates further upside from here.

Price is also moving above its major averages which is a good sign for an upward move. One can buy at this level and more at dips of Rs 105 with a stop loss of Rs 100 on a weekly closing basis and upside we can see the level of Rs 125-140 in the next 6-8 months.

FACT: Book Profits
We can see that the stock moved in a range of Rs 100-130 odd levels from August 2022 to November 2022. Volumes were quite low during this period.

After consolidating in range, high volume price breached the range and gave a sharp upside move to make all-time high of Rs 316-odd levels.

As the price is highly overvalued and the Stochastics Oscillator is also moving in an overbought zone, we can see some profit booking from this level.

One can book some profit at the current level and trail stop loss above their cost and for fresh entry, one can wait for some correction till Rs 240 and more at dips of Rs 210.

A stop loss of Rs 190 can be placed on a weekly closing basis and on the upside. We can see levels of Rs 320-400 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)