Big Movers on D-St: What should investors do with HCL Tech, Adani Total Gas, and L&T?

The Indian market closed in the red for the second consecutive day on Tuesday. The S&P BSE Sensex plunged more than 500 points, while the Nifty50 closed below 16,100 levels.

Sectorally, buying was seen in utilities, telecom, power, and realty, while selling pressure was visible in IT, metal, auto, and FMCG counters. Stocks in focus include HCL Technologies, which fell over 1 per cent on Tuesday, Adani Total Gas, and L&T.

Here's what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors should do with these stocks when the market resumes trading today:

HCL Technologies: Buy on Dips| Target Rs 1,150-1,250
On the longer-term chart, after making a low of around Rs 375 in March 2020, the stock has given a sharp upside rally to make an all-time high of Rs 1,377 in September 2021.
During this period, with high volumes, the stock made a Higher Top and Higher Bottom Pattern, a positive for bulls.

Till January 2022, the price moved sideways, making a Double Top around the Rs 1,377 level, and then corrected to retrace almost 45 per cent of the previous upside rally to make a low around the Rs 925 level.

Price is currently moving in a bear run and has support around Rs 900 odd levels. It will be a good level to enter around that level and more at Rs 850 for an upside level of Rs 1,150-1,250 in the next 6-8 months.

Hence, we recommend investors wait at the current level and enter on dips around 900 and more at further dips of Rs 850 with a stop loss of Rs 790 on a closing basis. On the upside, we can see Rs 1,150-1,250 odd levels in the next 6 to 8 months.

Adani Total Gas: Wait
From a low of Rs 174 odd levels in September 2020 price has given a sharp upside rally to make an all-time high of Rs 2,740 in April 2022. Price has made Higher Top Higher Bottom during this period. Volumes were also quite good in this period.

For the next 3 months, the price witnessed some profit forming a Flag Pattern as it faced resistance from every lower top and took support at every lower bottom.

In the current week, the price has breached the pattern on the higher side and gave a sharp upside rally to make a new high of Rs 2,844 odd level. The price is currently moving at a higher level and it is not advisable to enter at this level. Wait for some correction and enter around Rs 2,650 level and more at dips of Rs 2,550 for an upside level of Rs 3,000-3,300 in next 6-8 months.

Hence, we recommend investors wait at the current level and enter on dips towards Rs 2,650 and more at further dips of Rs 2,550 with a stop loss of Rs 2,300 on a closing basis. On the upside, we can see levels of Rs 3,000-3,300 in the next 6 to 8 months.

L&T: Buy
After making a low of Rs 661 in March 2020 on the weekly charts, the stock has given a sharp upside rally to make an all-time high of Rs 2,078 in January 2021.
The stock has given 1417 points upside rally. From a high of Rs 2,078, the price witnessed selling pressure as it retraced almost 44 per cent of the previous rally to make a low of Rs 1,456 odd level.

In this correction, the price has moved in Parallel Channel and the previous week with higher volume price broke the pattern on the higher side and closing above that level indicates further upside rally.
Price has also closed above 21-Days EMA of 1662 level. The Stochastic Oscillator is moving in an upward trend along with an increase in volume, indicating upward movement with limited downside risk.

One can buy at the current price and more at dips of Rs 1,595 for an upside level of Rs 1,950-2,150 in the next 6-8 months.

Hence, we recommend buying at this level and more at dips of Rs 1,595 with a stop loss of Rs 1500 on a closing basis. Upside seen at Rs 1,950-2,150 in the next 6-8 months.

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