Big movers on D-Street: What should investors do with IIFL Finance, Bajaj Auto and Network18?
Sensex declined 195 points to settle at 73,677 and the broader Nifty declined 49 points to close at 22,356.
Stocks that were in focus included names like IIFL Finance, which fell 20%, Bajaj Auto, which rose 1.74%, and Tata Steel, whose shares declined 5% on Tuesday.
Here's what Viral Chheda, Sr Technical Analyst, SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today.
IIFL Finance
Since covid lows of 60 prices moved to 700 and peaked around there in Oct 2023. Since then, prices were consolidating between 700 and 550 zones till now. Today we have seen the breakdown of the range and prices are trading below 480.
The bullish structure of higher high and higher low as per Dow theory has been negated and hence the trend as per the weekly charts has turned negative. Prices are trading below 20- and 40-week avg at 594 and 574 which is a bearish sign. Any rallies should be used to exit the stock. Rallies to 500/550 will face resistance on the higher side and support will come around 400.
Bajaj Auto
Prices have been on uptrend since the break of 4400 level in Apr 2023. When prices broke above 4400 level it was a two year consolidation breakout so it was a very bullish sign, since then prices have doubled from there and are currently trading at 8350.
Since the run up has been steep one should wait for some kind of consolidation to emerge and buy at lower levels.
The price structure is bullish as per Dow theory. Support will come around 8000/7800 zones which
