Big Movers on D-St: What should investors do with Tata Tele, Adani Gas and BLS International?

Indian markets closed higher on Tuesday after falling more than a per cent in the previous trading session. The S&P BSE Sensex rose more than 1500 points while the Nifty50 closed above 17700 levels.

Sectorally, buying was seen in realty, banks, finance, power, utilities, and oil & gas stocks.

Stocks that were in focus include names like Tata Tele which was up by about 20 per cent, Adani Total Gas which closed with gains of over 6 per cent, and BLS International which rose nearly 14 per cent on Tuesday.

Indian markets remained shut on Wednesday on account of Ganesh Chaturthi.

Here's what Priyank Upadhyay, VP - Research, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:

Tata Tele: Buy
After making a high of around Rs 290 in January 2022, the stock corrected towards Rs 90 in March 2022 and again posted a bounce higher towards Rs 210. Recently, it made a low of around Rs 88 on Monday, and Tuesday it was up by 20 per cent at Rs 108.45.

This shows that the stock has strong support around Rs 90 and with rise in prices, there is a huge spike in volume, which is the highest for this year, so maybe strong hands are getting into the stock.

The Relative Strength Index (RSI) was in the oversold zone on Monday with a reading of around 23 so it suggested that the stock is ready for a bounce and with Tuesday’s up move it looks likely this bounce could continue in the near term.

On a daily time frame, the stock has closed above the 20-day EMA which is a positive sign. Prices are also breaking above the downward channel from June highs which suggests we can see a move higher towards Rs 130-140 in the short to medium term.

The outlook remains positive on Tata Tele for the short to the medium term provided support at Rs 85 holds and we can expect a rally towards Rs 130-140 zones.

Adani Gas: Buy
This stock has been on a stellar rise since the start of this year as it has risen from around a low of Rs 1550 in March 2022 to Rs 3750 in August 2022.

Currently, prices are trading above 20- and 40-day EMA at Rs 3361 and Rs 3137 which suggests the trend on the daily time frame is positive. Recently, prices have given a breakout from a flag pattern and the target for the pattern comes around Rs 4400/4500 zones.

RSI has taken support at 60 and moved higher which suggests momentum is strong. Volume from the last 2 days has picked up with the breakout which is a positive sign as well.

Thus, we suggest investors buy this stock on dips around Rs 3600 for targets of Rs 4400/4500, and the risk for this view will be at a close below Rs 3200.

BLS International: Buy
This stock is in a strong uptrend, making higher highs and higher lows per Dow Theory. In April 2022, the stock broke out of the eight months of consolidation at Rs 155 and since then has given a stellar rally of more than 100 points and currently is trading around Rs 260.

Recently, since July after making a high of around Rs 257, the stock corrected towards Rs 220 and today have broken out of this downward channel which is a positive sign, and we can expect a move towards Rs 290/300 zones.

RSI is also trading above 60 which suggests momentum is strong and we can expect the rally to continue. Prices are trading above the 20- and 40-day EMA at Rs 234 and Rs 227, respectively so the trend remains up in the near term.

On the volume front, Tuesday's volume was the highest in the last six months which is a positive sign for the stock.

Thus, we suggest investors to buy this stock on dips around Rs 245-240 zones for targets around Rs 290/300; risk for this view will be a close below Rs 220.

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