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Trade Spotlight: What should investors do with Tata Elxsi, Tata Consumer & Rushil Décor?

Stocks that were in focus include Tata Elxsi, which closed with gains of over 9 percent, Tata Consumer, which fell nearly 5 percent, and Rushil Décor that rose nearly 9 percent on Tuesday.

May 05, 2021 / 07:54 AM IST
 
 
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Nifty50 fell nearly 1 percent on Tuesday pushing the index below the crucial support placed at 14500 levels. The S&P BSE Sensex dropped by more than 400 points.

Sectorally, buying was seen in the public sector, oil & gas, utilities while selling pressure was visible in healthcare, energy, telecom, and consumer durables.

On the broader market front, the S&P BSE Midcap index was down 0.5 percent, and the S&P BSE Smallcap index closed with losses of 0.57 percent – outperforming benchmark indices on a relative basis.

Stocks that were in focus include Tata Elxsi, which closed with gains of over 9 percent, Tata Consumer, which fell nearly 5 percent, and Rushil Décor that rose nearly 9 percent on Tuesday.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Close

Tata Elxsi:

This counter seems to be in a bull orbit of its own as it once again entered into uncharted territories with an intraday high of Rs 4090 levels in the last session.

With this high, it almost delivered an 8-bagger spectacular return from March 2020 lows of Rs 499. After these kinds of vertical moves, it becomes difficult to play for particular upside levels.

Nevertheless, based on line studies on long-term charts, a higher target of Rs 4436 can be projected in the next 45 to 60 days. However, in between, it needs to sustain above Rs 3508 levels on a closing basis.

Therefore, long-term investors can continue to hold with a stop below Rs 3500 on a closing basis, whereas fresh entries should be considered on a dip into the zone of Rs 3550 – 3500.

Tata Consumer Products:

This counter is moving in a well-defined ascending channel for the last 61 days. In the last 18 days, it was struggling around the upper boundary of the said channel.

Interestingly, a sharp cut from the channel resistance point of the last session may be hinting at a near top around recent life highs of Rs 698.

Hence, sustaining below Rs 640 this counter can eventually slip towards Rs 601 levels. For the time being, better to press the exit button and avoid considering fresh longs.

Rushil Decor:

This counter appears to have resumed its rally after retracing 50% of its entire move from September 2020 lows of Rs 67 to a recent high of Rs 187 levels registered in March 2021 levels.

Interestingly, this counter also seems to have consolidated around its 100 day simple moving average for 14 days forming a strong base around Rs 175 levels.

Hence, one should initiate fresh buying around these levels and look for an initial target of Rs 227 by placing a stop below Rs 180 on a closing basis.

Disclaimer: The views and investment tips expressed by the investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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