Big movers on D-Street: What should investors do with Nestle, Maruti and Coal India?
Sensex went lower by 286 to settle at 65,226, while the Nifty declined 92 points to end at 19,436.
Stocks that were in focus included names like Nestle India, which rose 3.03%, Maruti, which fell 1.96%, and Coal India, whose shares declined 1.34% on Wednesday.
Here's what Avdhut Bagkar, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Nestle India — Buy
Following a recent breakout of the “Double Bottom” pattern, the underlying momentum, which was already gearing for positive bias, has accelerated the upside voyage.
The stock is on the edge of hitting a new historic peak, and stability over 23,200 would elicit the start of the next upward wave.
The current trend, accompanied by surging volumes, remains ascending with the support of 2,300 and a convincing move over 23,200 shall eye a rally to the 25,000- level.
Maruti Suzuki India — Avoid
The automobile giant has breached immediate trend line support of 10,275, slipping in the direction of 9,955, its 50-SMA. The next crucial support falls at the 9,500-level, which could hold the current decline.
On the upside, the stock must overcome the selling pressure expected to emerge over 10,700 levels.
The existing trend hints at a fragile sentiment that may quicken if 9,500 is taken out. Bears will then assume command.
Coal India — Buy
Post experiencing a sideways consolidation in the 250 to 200 levels zone, the stock broke out on the upside in early September, marking a bullish outlook for the medium-term.
