Big Movers on D-St: What should investors do with Mahindra CIE, Adani Enterprises and Apollo Tyres?

Sectorally, buying was seen in power, utilities, auto, and public sector stocks, while selling was seen in IT, metals, realty, and healthcare names. Stocks that were in focus included names like

, which rose over 3 per cent, , which advanced nearly 5 per cent, and , which gained over 6 per cent.

Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:

Mahindra CIE: Buy
After a short-term correction, the stock took support near the 50-Day SMA (Simple Moving Average) or Rs 262 and then reversed. Post correction, it bounced back very sharply.

In the last two days, it rallied over 15 per cent from Rs 262 to Rs 310. On Thursday, after a strong uptrend rally, the stock witnessed some profit booking at higher levels.

The short-term structure of the stock is on the bullish side, but a fresh uptrend wave is possible only after a breakout above Rs 300. A close above Rs 300 could take it higher towards Rs 315-325. On the flip side, a fresh round of selling is possible if the stock succeeds to close below the 20-Day SMA or Rs 279. Below which, it could slip till Rs 265-255.

Adani Enterprises: Buy
The stock has rallied over 70 per cent so far in this quarter. On Thursday, the stock rallied 5 per cent and registered a fresh all-time high of Rs 3,767.95.

On daily and weekly charts, the stock has formed a promising uptrend continuation formation and also formed a long bullish candle, which is broadly positive.

The medium-term texture of the stock is positive, but due to the short-term overbought situation, we could see some profit booking at higher levels. Hence, buying on dips and selling on rallies would be the ideal strategy for short-term traders. Rs 3,600 and Rs 3,550 would be the key support zone.

As long as the stock is above the same, the uptrend wave is likely to continue. Above this, it could move up to Rs 3,900-4,000. Traders may prefer to exit from the trading long positions on a close below Rs 3,550.

Apollo Tyres: Buy
The stock rallied over 6 per cent on September 15th. On Thursday, it opened with a strong note and quickly surpassed the short-term resistance of 285 with strong volume activity.

Despite weak market conditions, Apollo Tyres held strong momentum throughout the day. In the short-term, the stock has formed a strong price volume uptrend continuation formation.

The pattern structure suggests that the breakout action will continue in the near term if the stock trades above the 285 level. For the trend-following traders, 285 would be the key level to watch out for. We can expect an uptrend continuation wave up to Rs 320-325. On the flip side, the uptrend would be vulnerable on a close below Rs 285.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)