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Trade Spotlight | What should you do with Tata Motors, PNB, L&T Finance Holdings on Friday?

The short term structure of Punjab National Bank is still in to the down side and Rs 34 and Rs 35 would be the immediate resistance area for the Punjab National Bank. Blow the same, the chance of hitting Rs 29-27 would turn bright.

February 25, 2022 / 08:18 AM IST
 
 
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Dalal Street saw a bloodbath on Thursday as the benchmark indices plunged nearly 5 percent in sync with a steep fall in global markets with the invasion of Ukraine by Russian forces and crude oil prices crossing $100-a-barrel mark. The heavy selling pressure across sectors forced the market to post one of the biggest single-day fall since March 2020.

The BSE Sensex tanked 2,702 points to 54,530 and the Nifty50 corrected 815 points to 16,248, while the broader markets fell around 6 percent.

Stocks that were in action include Tata Motors, which saw the lowest closing level since October 12, 2021, falling 10.3 percent to Rs 427.95, while Punjab National Bank plunged 14.3 percent to Rs 32, the lowest closing level since December 2020, and L&T Finance Holdings cracked 10.7 percent to Rs 62.30, the low point of November 2020.

The PSU Bank index was down more than 8 percent and Financial Services corrected over 5 percent, while Auto index fell more than 6 percent.

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

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Punjab National Bank

On February 24, the stock witnessed a sharp selloff, corrected over 14 percent. And in this month so far, it is corrected over 22 percent.

From last couple of weeks, the stock consistently trading below 200-day SMA and on daily charts, it has maintained correction continuation formation.

The short term structure is still in to the down side and Rs 34 and Rs 35 would be the immediate resistance area for the Punjab National Bank. Blow the same, the chance of hitting Rs 29-27 would turn bright.

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Tata Motors

From last couple of months, the stock has been consolidating within the range of Rs 480 to Rs 520. On Thursday, due to extremely weak market conditions, the stock opened with a gap down and fell over 10 percent.

On daily and weekly charts, it has maintained lower top formation which is broadly negative for Tata Motors. We are of the view that, Rs 440-450 would be the immediate hurdle for the traders. Below which the correction wave could continue till Rs 400-390.

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L&T Finance Holdings

From last couple of months, the stock is holding lower top formation. Another important thing is, it is consistently trading below 50 and 20 day SMA.

In this month so far, the stock corrected over 13 percent and the texture indicating further weakness as long as its trading below Rs 65. Below which, the correction wave is likely to continue till Rs 60. Further down side may also continue which could drag the stock up to Rs 55

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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