Big Movers on D-St: What should investors do with Tube Investments, GE Shipping and Pidilite Industries?

Indian market closed on a strong note on Tuesday for the third consecutive day. The S&P BSE Sensex rose by more than 200 points while the Nifty50 closed above 16,300 levels.

Sectorally, buying was seen in realty, public sector, metals, and autos.

Stocks that were in focus include names like Tube Investments which rallied more than 12 per cent, GE Shipping which closed with gains of nearly 7 per cent, and Pidilite Industries which made higher highs and higher lows -- a bullish sign.

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

Tube Investment: Buy on Dips| Target Rs 2250-2500| Time 6-8 months
On a longer-term chart after making a low of around Rs 254 in April 2020, the stock has given a sharp upside rally to make an all-time high of Rs 2025 in January 2022.

During this period with high volume, the Higher Top Higher Bottom Pattern was formed. From the highs of Rs 2025, the price witnessed some selling pressure as it retraced almost 35 per cent of the previous upside rally to make a low of around the Rs 1441 level.

After making a double bottom pattern around Rs 1440, the price has given a sharp upside rally to make a new high of Rs 2168.

The price is currently moving in an overbought zone and it is not a good level to make a fresh entry. Once it corrects to around Rs 1900 odd level, it will be a good level to enter and more at dips of Rs 1800 for an upside level of Rs 2250-2500 in the next 6-8 months.

Hence, we recommend investors to wait at the current level and enter at dips of Rs 1900 and more at further dips of Rs 1800 with stop loss of Rs 1650 on a closing basis, and on the upside, we can see levels of Rs 2250-2500 in the next 6 to 8 months.

GE Shipping: Buy| Target Rs 650-750| Time 6-8 months
After making a low of Rs 162 on the weekly charts in March 2020, the stock has given a sharp upside rally to make 3-year high of Rs 445 in June 2021.

During this period, the price has made a Higher Top Higher Bottom pattern.

For June 2021-till date, the price has formed a Cup and Handle Pattern and in this week with high volume, the price has breached the pattern and from here further, the upside can be seen.

The Stochastics Oscillator is moving in an upward trend which is a good sign for further upside. One can buy at the current price and more at dips of Rs 400 for an upside level of Rs 650-750 in the next 6-8 months.

Hence, we recommend buying at this level and more at dips on Rs 400 with stop loss of Rs 350 on a closing basis and on upside, we can see the level of Rs 650-750 in the next 6-8 months.

Pidilite Industries: Buy| Target Rs 2700-2950| Time Horizon 6-8 months
After making a low of Rs 1185 in March 2020 on the weekly chart, the stock has given a sharp upside rally to make an all-time high of Rs 2764 in January 2022.

From its high, the price has witnessed selling pressure as it retraced almost 50 per cent of the previous rally to make a low of Rs 1988 odd level.

In this correction, the price has moved in Parallel Channel, and in the previous week with higher volume, the price broke above the pattern on the higher side indicating a further upside rally. Price has also closed above 21-EMA of Rs 2263 level.

Stochastic Oscillator is moving in an upward trend along with an increase in volume indicating upward movement with limited downside risk.

One can buy at the current price and more at dips at Rs 2175 for an upside level of Rs 2700-2950 in the next 6-8 months.

Hence, we recommend buying at this level and more at dips on Rs 2175 with stop loss of 2050 on a closing basis and on upside, we can see the level of Rs 2700-2950 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)