Big movers on D-Street: What should investors do with Eicher Motors, Network 18 and Escorts?

economictimes.indiatimes.com:

Sensex declined 316 points to settle at 65,512, while the Nifty fell 109 points to end at 19,528.

Stocks that were in focus included names like Eicher Motors, which fell 2.68%, Network 18, which rose 8.07%, and Escorts, whose shares declined 1.73% on Tuesday.

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.

Eicher Motors — Sell
From the lows of 3125, the stock has witnessed a Bull Run to make the high of 3539 odd levels. Higher Top Higher Bottom pattern was seen as Bulls were having upper hand on price.

Stock was moving in an upward moving channel and yesterday with high volume price breached the range on negative notes and closing below 50 DMA of 3365, we can see some downside move. Currently price has a minor support around 3280, below which correction can be seen till 3200-3100.

The Stochastics Oscillator has crossed its red line on downside and also an increase in volume indicating some profit booking can be seen.

One can sell at current level and more at a rise of 3400 with SL of 3500 on weekly closing basis and downside we can see level of 3200-3100 in next 2-3 months.

Network 18 — Buy
After consolidating in the range of 57-60 levels in the month of Aug 2023 price has given a sharp upside rally to make nine months high of 76.4 odd levels.

Volumes were on rise as buyers were having control on price to take it to the new highs.

From highs price witnessed some profit booking as it retraced almost 70% of previous rally to make low around 63. After taking support from previous bottoms and with relatively higher volume price witnessed a sharp Bull Run and closing above 20 DMA of 68 we can see further