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    Big Movers on D-St: What should investors do with Apollo Tyres, Bajaj Finance and Bajaj Finserv?

    Synopsis

    The company's quarterly update on Wednesday sent the stock lower. The stock was already quoting at expensive valuations and failed to meet expectations. The punishment was severe, and it broke all-important support and closed below the 20 and 10-day SMA.

    Big Movers on D-St: What should investors do with Apollo Tyres, Bajaj Finance and Bajaj Finserv?Agencies
    Indian market closed in the red for the second consecutive day in a row on Thursday tracking weak global cues.

    S&P BSE Sensex fell more than 300 points while Nifty50 broke below 18000 levels on a closing basis.

    Sectorally, buying was seen in oil & gas, FMCG, energy, auto, and metals while selling pressure was visible in banks, IT, consumer durable, and telecom stocks.

    Stocks that were in focus include names like Apollo Tyres which rose more than 5%, Bajaj Finance which dropped over 7%, and Bajaj Finserv which fell more than 5% on Thursday.

    Here's what Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today:

    Apollo Tyres: Buy
    Thursday was the day for tyres stocks and most of the stocks in the segment performed well as crude oil prices fell suddenly.

    Since March 2022, Apollo Tyre has remained a strong outperformer whenever the sector has rallied. On Thursday, it rose 6% and closed above 330, a major hurdle for the stock.

    Above 330, the stock's next major resistance is placed at 350 and in the best-case scenario at 370. The previous support level will act as a major support for it.

    However, the support of 10-days and 20-days SMA will be the final stop loss for holding long positions, which is at 320.

    Bajaj Finance: Avoid Longs
    The company's quarterly update on Wednesday sent the stock lower. The stock was already quoting at expensive valuations and failed to meet expectations.

    The punishment was severe, and it broke all-important support and closed below the 20 and 10-day SMA.

    The level of 5750 and 5550 will be watched on the downside. On the upside, there will be resistance at 6500 and 6600. It is advised to avoid taking any long positions in between.

    Bajaj Finserv: Contra Buy
    Shares of Bajaj Finserve fell on Thursday due to continued weakness in Bajaj Finance. On Thursday, the stock broke the 200-day SMA at 1520 and never looked back.

    In the near term, technically, the stock should touch 1375 or 1350 level. On the upside, 1500 and 1550 could be supply areas. If the stock bounces like that, selling is advised. A contra buy is advised between 1375/1350 levels.

    (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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