Stocks that were in focus included names like Paytm, which fell 6.19%, YES Bank, which rose 5.68%, and Dixon Tech, whose shares declined 0.62% 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.
Paytm – Avoid
In the daily chart after making the 52 week high around 998 in Oct 2023, price has witnessed some profit booking to move in the range of 870-952 odd levels.
After moving sideways for almost 15-20 days, price breached the distribution phase and witnessed sharp correction to make a low of 620 odd levels.
Volumes were on rise as sellers were having upper hand on price to take it down. As the stock is facing selling pressure with increase in volume we can see further downside from here. Stock is trading below the all 3 major averages which is a negative sign.
Hence one should avoid buying at current level and can sell at a rise of 680 with SL of 740 on weekly closing basis and downside can be seen till 580-500 in next 3-4 months.
YES Bank – Buy
After consolidating in the range of 16-19 levels in the month of June-Oct 2023, price has given a sharp upside rally to make the high of 21 odd levels. Volumes were on top as buyers were having full control on price. After giving almost 32% return from its lower level of 16, price moved sideways and today with high volume price has breached the range and closing above that level indicating further upside from here.
As the price is trading at 11 months higher level we can see further upside till 27-32. Price is also moving above all three major averages which is a good sign for further upside. The Stochastics Oscillator is also moving in an upward trend along with an increase in volume indicating further upside from here.
Hence one can buy at current levels and more at dips of 19.5 with SL of 18 on weekly closing basis and upside can be seen till 27-32 in next 10-12 months.
Dixon Tech – Buy on dips
After moving in the range of 5000-5500 levels in the month of Oct-Nov 2023, price has given a sharp upside rally to make an all time high of 6186 odd levels. Volumes were on top as buyers were having full control on price.
At higher levels price has moved in range forming Flag Pattern and in the last 2 days with high volume price has breached the range to make new highs of 6765 odd levels. As the price has given almost 30% return from lower level we can see some profit booking from current level.
Stock looks good for the long term, but in the short term we can see some downside. The Stochastics Oscillator is moving at an overbought zone which is a negative sign. Hence one can buy at dips of 6000 and more at dips of 5700 with SL of 5350 on weekly closing basis and upside can be seen till 7200-8000 in next 10-12 months.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
