Big Movers on D-St: What should investors do with Dish TV, Power Grid and Gujarat Gas?

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The Indian markets pared gains and closed flat on Tuesday after a gap-up start. The Nifty50 managed to hold on to 17,000 levels on a closing basis.

Sectorally, buying was seen in oil & gas, energy, telecom, and healthcare stocks, while selling was seen in metals, banks, and capital goods space.

Stocks that were in focus included names like

, which fell more than 6 per cent, , which rose nearly 2 per cent, and , that rallied nearly 6 per cent.

Here’s what Priyank Upadhyay, VP Research, SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today:

Dish TV: Buy above Rs 23.50

Prices have been in a downtrend since 2017, when it was trading around Rs 110. It touched Rs 10 levels in May 2020, and since then has hit a high of around Rs 23 in September 2021. For the past year, though, the stock has been consolidating between Rs 23-10.

We have seen strong volumes in this stock, around Rs 10 in September last year, and then recently, in Aug 2022 as well, suggesting strong demand is around Rs 10.

Prices are trading below the 200-week EMA, placed at Rs 23.50, and are above the 50-Week EMA at Rs 14.

Once it starts sustaining above Rs 23.50, it will be a bullish sign, and prices could head higher towards Rs 34, followed by Rs 42.

RSI is also trading above 50, a positive sign, and once it sustains above 60, the stock could pick up the pace and head higher. On the downside, supports are seen at Rs 14-10 zones — so one can accumulate at those levels.

Power Grid: Accumulate

The stock has been consistently making higher highs and higher lows as per Dow Theory since March 2020, so the medium-term trend is on the upside.

Prices are trading above the 200-week EMA placed at Rs 174 and below the 50-week EMA placed at Rs 210. In the last few trading sessions, we saw a sharp fall from Rs 230 to Rs 190.

In this process, stock prices tested the breakout levels of June 2021 at Rs 190, so the bullish polarity was at work at those levels, and the stock strongly bounced from those levels.

The weekly RSI is near 40, which could act as support and push the stock above 50, which will be a positive sign.

Moreover, this stock belongs to the power sector, which has broken out after 14 years of consolidation since 2008.

The power sector is the place for investors for the next 2 to 3 years; thus, we suggest investors accumulate Power Grid at current levels of 200, and initial targets will be around 240.

Once the stock closes above Rs 240, then we aim for Rs 300 in the medium-to-long term. The risk will be a weekly close below 170.

Gujarat Gas: Buy

The stock topped out around Rs 780 in August 2021. In June 2022, it made a low of around Rs 400 and bounced higher. Prices rose from the 200-week EMA at Rs 409 in June 2022, and the stock is now trading around Rs 500.

Prices have broken the downward sloping channel from January 2022, which is a positive sign. Currently, prices are above 200-week EMA at Rs 418 and below the 50-week EMA at Rs 522.

Once it sustains above Rs 525, we can see a strong move on the upside towards Rs 600 levels. RSI has also crossed above 50, a positive sign.

On the Point and Figure chart as well, Gujarat Gas has given a Bullish ABC Breakout, which opened bullish counts for Rs 600 followed by Rs 690 while risk will be at a close below Rs 480.

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



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