Stocks to Buy: Big moves on D-Street: What should investors do with AB Capital, Aster DM and Vodafone Idea?
Stocks in focus included names like AB Capital, up 10.5%, Aster DM, up 0.5% and Vodafone Idea, whose shares fell nearly 3% on Tuesday.
Viral Chheda, senior technical analyst at SSJ Finance & Securities, recommends how investors should handle these stocks when the market resumes trading today.
AB Capital
After hitting a low near 155 in December 2023, the price rose sharply and hit an all-time high of 199.6 odd. Price gained nearly 28% on the low end as the Bulls held an advantage over the Bears.
The stock is currently creating a higher top, lower bottom pattern. It is moving toward a bull run and a close above the previous high of 199 would indicate further upside to 250-280. On the downside, there is support at the 165 odd level and we could see new highs until this low remains intact.
The Stochastic Oscillator is trending upward with increasing volume, indicating an upward movement with limited downside risk. Therefore, you can buy at the current level, and if SL 165 or 180 falls as of the weekly close, you can buy more, and you can see upside to 280-320 in the next 10-12 months.Aster DM
After hitting an all-time high around 495 in February 2024, the price witnessed weakness hitting a low around 402 odd levels. Prices have offered nearly a 93-point correction as sellers have gained the upper hand over the bulls.
The stock is currently facing more selling pressure and could see further downside to test the previous low of the 380 level. On the higher side, once the 420 level is removed, we could see some recovery towards the 440-470 odd levels.
You should avoid buying this stock now and wait for further decline to 380. The Stochastic Oscillator is moving in a downtrend, indicating a limited downside movement with an uptrend. So you should avoid buying at current levels and you can buy at lows of 380, SL 340 as of week close and see upside to 450-500 in next 10-12 months.
Vodafone Idea
On the daily chart, we can see that after hitting a double top near 18.4 in February 2024, the price made a correction that made a low at an odd level of 11.75.
Since the Bears were in complete control of the price, the price adjusted by almost 40%. After finding the support of the 200 DMA around 11.60, the price declined slightly on the lower levels to make a high of 14.25. The price is currently moving sideways with support around 12.50 and resistance around 14.50. A breakout on either side may witness sharp movements.
The stock is good for the long term, but at current levels we will have to wait for the stock to move above the 14.5 odd level. So, you should buy above 14.5 and then wait to buy more when SL drops to 11, 12.5 as of weekly close and you can see upside to 18-22 over the next 10-12 months.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
