Big movers on D-Street: What should investors do with Vedanta, Hindalco and Piramal Enterprises?

Sensex and Nifty soared to fresh closing record highs on Wednesday, with the 30-share benchmark index crossing the historic 72,000 mark. The Nifty climbed 213 to settle at a record high of 21,654.

Stocks that were in focus included names like Vedanta, which fell 3.32%, Hindalco, which jumped 4.25%, and PEL, whose shares gained 1% on Wednesday.

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
In the daily chart after making the low around 199 in Sept 2023, price has witnessed a Bull Run to make the high of 255 in Dec 2023. During this period volume was on rise as Bulls were having full control on price. During this period price has also made the Higher Top Higher Bottom pattern.

From highs, the price witnessed some profit booking to make low of 238 level and after taking support of 200 DMA at 240, price has given some pull back and closing around previous higher level of 255 we can see further upside from here. Price is also moving above all three major averages which is a good sign for further upside. The Stochastics Oscillator is also moving in an upward trend along with an increase in volume indicating further upside from here.

Hence one can buy at current levels and more at dips of 238 with SL of 218 on weekly closing basis and upside can be seen till 300-350 in next 6-8 months.

Hindalco – Avoid
In the daily chart after making the low around 448 in Oct 2023, price has given an upside rally to make the 52 week high of 603 in Dec 2023. During this period volume was on rise as buyers were having upper hand over price. As the price has given almost 35% upside rally from low of 448, we can see some profit booking at current level.

The stock is good for the long term and can buy around lower levels of 560-540 and upside can be seen as a new high in near terms. Price is also moving above all three major averages which is a good sign for further upside. The Stochastics Oscillator is also moving in the overbought zone indicating some correction from here.

Hence one should avoid buying at current level and can buy at the lower level of 560 more at dips of 540 with SL of 510 on weekly closing basis and upside can be seen till 640-700 in next 8-10 months.

PEL – Buy
In the daily chart after making the 52 week high around 1140 in Sept 2023, price has witnessed some profit booking to make the low of 851 odd levels. During this period the Lower Top Lower Bottom pattern was seen as bears were having the upper hand over bulls. In this downward move volumes were decreasing with every new low indicating the price is changing their hand from bears to bulls.

At lower level after taking support of 200 DMA, with increase in volume price has given some pull back and closing around 20 DMA of 920 odd levels we can see some upside from here. The Stochastics Oscillator is also moving in an upward trend along with an increase in volume indicating further upside from here.

Hence one can buy at current levels and more at dips of 850 with SL of 790 on weekly closing basis and upside can be seen till 1080-1200 in next 10-12 months.

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(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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