Big Movers on D-St: What should investors do with Hindalco, Vedanta and Intellect Design?

Indian market closed in green for the second consecutive day in a row on Tuesday. The S&P BSE Sensex rose over 1,300 points while the Nifty50 closed above 16,200 levels.

Sectorally, buying was seen in metals, energy, oil & gas, telecom, and capital goods. The S&P BSE Midcap index rose 2.5 per cent, and the S&P BSE Smallcap index closed with gains of 2.7 per cent.

Stocks which were in focus include names like

which closed with gains of over 9 per cent, rallied nearly 12 per cent, and closed with gains of over 10 per cent.

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

Hindalco: Buy
In the weekly chart, we can see that the stock has given a sharp upside rally from the lows of Rs 84 in March 2020 to all-time high of Rs 636 in April 2022.

The stock has made a Higher Top Higher Bottom pattern during this period. From its high price, it has retraced almost 48 per cent of the previous upward rally to make low of Rs 384.

If we draw an upward-moving trendline from a low of Rs 84, we can see that the current low of Rs 384 has taken support over this trendline.

It has made a Double Bottom pattern at this level with relatively higher volumes which is a positive sign for bulls. The price has given a sharp upward movement and from here. Further upside of Rs 490-540 can be witnessed in the short to medium term.

Stochastics oscillator is also trading in oversold territory. Hence, we recommend buying at this level and on dips up to Rs 405 with a stop loss at Rs 380 on a closing basis, and the upside can be seen till Rs 490 to Rs 540 levels.

Vedenta: Rs 330 levels eyed
From October 2021 to March 2022, the price has moved sideways in range taking support from multiple bottoms around Rs 280 and facing resistance at higher tops around Rs 385.

Price consolidated in this range with high volumes and once it breached the range on the higher side, we have seen an upward movement which took the stock to an all-time high of Rs 441.

At an all-time high price, we witnessed some distribution. The stock gave a sharp correction to test the previous bottom of Rs 385. Volumes were quite low in this period which confirms the upward movement can be seen in the near term.

At the current level, the price has made Morning Doji Star Pattern and once it goes above Rs 330 odd level, we can see further upside till Rs 380-440 odd levels.

Hence we recommend buying at this level and more at dips at Rs 300 with SL at Rs 275 on a closing basis for a target of Rs 380-440 in 6-8 months.

Intellect Design: Buy
After making a low of around Rs 43 in March 2020, the stock price has given a sharp upside rally to make an all-time high of Rs 892 in July 2021.

The upward movement was seen with relatively higher volumes. For the next six months, the price consolidated in 300 points and once it breached on the higher side we saw a new high of Rs 987 in April 2022.

From highs of Rs 987, price corrected with marginal volume and witnessed previous lows of Rs 560 odd levels. After making multiple bottoms around Rs 560 with high volumes, the stock has given some upward move and from here on, upside can be seen till Rs 720-790 level in next 6-8 months.

Hence, we recommend buying at this level and more at dips at Rs 600 with a stop loss at Rs 560 on a closing basis with an upside level of Rs 720-790.

(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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