Big movers on D-Street: What should investors do with Tata Motors, Adani Wilmar and PC Jewellers?
Stocks that were in focus include names like Tata Motors, which rose 0.93%, Adani Wilmar, which gained 1.92%, and PC Jewellers, whose shares jumped 10% on Monday.
Here's what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.
Tata Motors
Tata Motors' price action has increased by 182% over the past year and has entered a consolidation phase, demonstrating resilience to less than 20% drawdowns. This suggests that experienced investors are maintaining their positions, and the current accumulation phase indicates the addition of buyers, strengthening the primary trend.
These are positive indicators. The stock's EPS strength is improving, and there is increasing demand from buyers.
Additionally, with the price action trading near the support of shorter-term daily and weekly moving averages, there are opportunities for low-risk, high-reward investments. We recommend buying Tata Motors with a target price of 1170 and a protective stop at 964.
Adani Wilmar
Adani Wilmar's price action has been showing a multi-year negative trend. It has not consistently exceeded its crucial resistance level during the downtrend, indicating a 67% corrective rally.
With the 50-week moving average serving as overhead solid resistance and weak earnings per share and price strength, we recommend avoiding buying this stock.
PC Jewellers
The price action of PC Jewellers has experienced a significant rebound from its 50-day moving average, pushing its support
