Big moves on D-Street: What should investors do in Bajaj Finance, Tata Investment and KFin Technologies?
Stocks in focus included names like Bajaj Finance, down 5.10 per cent, Tata Investment, up 20 per cent and KFin Technologies, up 7.64 per cent on Tuesday.
Viral Chheda, senior technical analyst at SSJ Finance & Securities, recommends how investors should handle these stocks when the market resumes trading today.
Bajaj Finance – Buy when it falls
After hitting an all-time high of 8192 in October 2023, the price underwent a sharp correction and hit a low of 6855. The stock created a bottom-top-bottom pattern as sellers gained an advantage over price. The price is currently trading near six-month lows and has support at the 6800 odd level. Once support is removed we could see further decline towards 6300-6000.
Stocks are good in the long run and you can buy them whenever they dip. The price is currently moving above 200WMA, which is a positive sign of a bounce and new highs. The Stochastic Oscillator is moving in oversold territory, indicating a slight bounce from this level.
So, we should wait at current levels and buy at the lows of 6700, and based on weekly close, we should buy more at SL 6200, 6500 lows and we can see upside to 7600-8200 in next 12-18 months.
Tata Investment – Book Profit
After moving in the 4000-4700 odd level range, the price showed a sharp upward trend and hit an all-time high of 5794 odd level. Volume increased as the bulls took the price lead. The price has taken almost 45% gains from lower levels and we can expect some profit booking at current levels.
The stock may face resistance around the 6000-6250 level and from here it could witness some profit booking to make a low anywhere between 5300-5000.
Stocks are good for the long term, but they are very overbought at current levels, so you might want to buy whenever they dip. The Stochastic Oscillator is moving in overbought territory which indicates a slight correction from this level.
So, you can book some profits from current levels and wait for a slight pullback to buy around 5300 or above on the dip of 5000 using SL 4500 as a weekly close and see upside to 6500-7200 over the next 12-18 months. You can see it.
Kfin Tech – Long Term Purchase
After hitting a low near 456 in December 2023, the price witnessed a sharp bull run on the daily chart, hitting an all-time high of 604 odd levels. Prices returned nearly 33% from low levels as buyers had complete control over the prices. The stock may face resistance near the 620-650 level and from here it may witness some profit booking to make a low between 550-500.
In the long run, you can buy stocks whenever they look good and dip. The price is moving above all three major averages – 20DMA, 50DMA, and 200DMA, which is a good sign that there is room for further upside.
So, you can take some profits from current levels and wait for a slight dip to buy above around 550 on a 500 drop to SL 470, SL 470 as of weekly close and see upside to 700-800 in next 10-12 months. You can see it.
(You can now subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
(You can now subscribe to ETMarkets WhatsApp channel)
Download the Economic Times news app to get daily market updates and real-time business news.
Subscribe to The Economic Times Prime and read Economic Times ePaper Online and Sensex Today.
Top trending stocks: SBI stock price, Axis Bank stock price, HDFC Bank stock price, Infosys stock price, Wipro stock price, NTPC stock price.
