Big Movers on D-St: What should investors do with Power Grid, Piramal Enterprises and RBL Bank?

The Indian market closed in the red for the fourth consecutive day on Monday tracking weak global cues.

The S&P BSE Sensex fell by over 950 points, while the Nifty50 just managed to hold 17,000 on a closing basis.

Stocks that were in focus included names like Power Grid, which recouped losses and closed with a loss of nearly 1 per cent, Piramal Enterprises, which fell more than 6 per cent, and RBL Bank, which plunged over 8 per cent on Monday.

Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Power Grid Corporation: Buy
Since September 16, 2022, the stock has been under tremendous pressure, as it has reported a fall of 28 per cent from its mid-Sept high of Rs 238.45. Later, the stock found support around Rs 190, which coincides with its medium-term support zone and its 100-week SMA as well. On the daily chart, Power Grid formed an indecisive pattern-Doji and erased partial damage.

The key technical indicators tested the oversold zone on the short-term timeframe chart, while its near-term indicators reversed from the lower level and are poised for a positive cross-over. Risk reward is favorable for a fresh long position at this juncture.

This could take the stock towards Rs 220 initially and Rs 230 subsequently. In case of any decline, the stock will find support around the Rs 190-186 zone.

Piramal Enterprises: Sell
The stock extended losses post demerger and slipped to a 52-week low. It is trading below major moving averages on short-term, medium-term and long-term timeframe charts. The key technical indicators also favor bears.

This could drag the stock towards Rs 802-665-607 levels. On the higher side, Piramal Enterprises will face a hurdle around the Rs 1,000-1,050 zone. A stable move above that zone will invalidate a short-term decline in the stock.

RBL Bank: Sell
The stock reversed gains after forming a Double Top pattern around Rs 134 and slipped to a 1-month low of Rs 112. It closed below its 50-day EMA for the first time since August 1, 2022.

In the past, the stock witnessed a substantial decline after violating that moving average. The key technical indicators are negatively poised on medium-term and short-term timeframe charts.

As per the current set-up, a further decline cannot be ruled out, which could drag the stock towards Rs 100 initially and Rs 92 subsequently.

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