Big movers on D-Street: What should investors do with TVS Motor, Berger Paint and Tata Communications?
Stocks that were in focus included names like TVS Motor, which rose 2.22%, Berger Paint, which increased 0.7%, and Tata Communication, whose shares declined 1.55% on Monday.
Tracking the Asian peers, equity indices climbed nearly 1% each on Monday. The 30-share climbed 560 points to settle at 73,648 and the went up 189 points to 22,336.Stocks that were in focus included names like , which rose 2.22%, , which increased 0.7%, and Tata Communication, whose shares declined 1.55% on Monday.
Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart, recommends should do with these stocks when the market resumes trading today.
TVS Motor
The counter has experienced a significant decline from higher levels and has broken down to a Head and Shoulders pattern in the daily timeframe, signaling a pause to the incredible rally witnessed in the past.
Presently, the structure appears weak as the counter has fallen below its 100-day simple moving average and has slipped below the critical level of 2000. In terms of technical levels, initial support is expected around 1860, followed by a major support level at 1755, where the 200-day simple moving average is situated.
On the upside, the first resistance is at 2000, while a more significant resistance is seen at 2050 where the 100 DMA is placed.
Berger Paint
It has witnessed a breakdown of a head and shoulder formation on the daily chart. The overall structure of the counter is distorted as it is trading below all its important moving averages.
The momentum indicator RSI (relative strength index) is negatively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the downside.
On the downside, Rs 500 is immediate support. Below this, we can expect a downward move towards Rs 480. On the upside, Rs 540 is the important resistance level.
The counter has witnessed a steep decline from it's all-time high zone and recently experienced a breakdown to a trendline support following weak Q4 results.
The structure appears very weak as the counter has slipped below all its major moving averages, which opens a downside window to levels around 1666 if the weakness persists.
The major support is seen at the 1600 level. On the upside, the initial resistance will be encountered at its 200-day moving average, positioned at 1780 levels. Above that, short covering may continue up to the 1845-1850 levels.
Source: Stocks-Markets-Economic Times
