Stocks that were in focus include names like Vedanta, which was lower by 1.59%, Mazagaon Dock, which gained 10% and Tata Communications, whose shares rose nearly 7% on Tuesday.
Here’s what Viral Chheda, Sr Technical Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today:
Vedanta – Buy
After making multiple bottoms around 232 in March 2023, the price witnessed a bull run to hit a 52-week high of 288-odd levels.
Volumes were on the rise as buyers were having the upper hand against the bears. After making a high of around 288, the price is currently moving in the range of 270-288. Once there is a breakout on a positive note, we can see a sharp 30-40-point move.
Bulls are trying their best to take prices above the range as in the last few days volumes rose. Once it breaches the resistance level of 288, we can expect a sharp up move in the stock.
If the stock breaks the 270 level on the lower side, we can see the price slide down to test the support of 250. It can rebound from there to make a new high. Price is currently trading above the 50-DMA of 274, indicating some upside move from here.
Hence, one can buy at the current level and more at dips of 255 with an SL of 245 on a weekly closing basis and the upside can see a level of 325 to 375 in the next 8-10 months.
Mazagon Dock – Buy on dips
On the longer-term chart, after consolidating in the range of 600-900 from Dec 2022 to June 2023, the price has given a sharp upside rally to make an all-time high of 1592-odd levels.
During this bull run, volumes were on the rise as buyers were having full control. The stock has given almost 67% returns from its lower level of 600, making the stock highly overbought and it can now face some selling pressure at current levels.
At the current level, it is viable to book partial profit as the price can see a correction to test support around 1400 odd level and can rebound from there to make new highs of 1800-2000 level in the medium-to-long-term.
The Stochastics Oscillator is also moving at an overbought zone, indicating a downward movement.
Hence, one should avoid buying at the current level and can book some profit. To make a fresh entry one should wait for the price to come around 1400 and more at dips of 1300 with SL of 1150 on a weekly closing basis and on the upside, we can see a level of 1800 to 2000 in the next 8-10 months.
Tata Communication – Buy
After consolidating in the range of 1140-1300 from Jan 2023 to June 2023, the price has given a sharp upside rally to make an all-time high of 1650-odd levels.
The price has given almost 27% returns from its breakout level of 1300 as buyers are having the upper hand over sellers. From highs, the stock has seen some correction, making a Flag Pattern. This week with relatively high volume, the price has breached the pattern and is moving at a higher level, indicating further upside from here.
The stock is also moving above all its major averages of 20 DMA, 50 DMA and 200 DMA, indicating bulls can lead the price to higher levels.
The Stochastics Oscillator is moving in an upward trend along with an increase in volume, indicating an upward movement with limited downside risk.
Hence, one can buy at the current level and more at dips of 1540 with an SL of 1450 on a weekly closing basis and on the upside, we can see a level of 1900 to 2100 in the next 8-10 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)