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Trade Spotlight | What should you do with TVS Motor, KIOCL, Vardhman Textiles, and Swan Energy stocks?

Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today.

December 16, 2021 / 07:14 AM IST
2016-21 witnessed the worst performance ever by the public sector undertakings (PSUs) in the wealth-creation process.

2016-21 witnessed the worst performance ever by the public sector undertakings (PSUs) in the wealth-creation process.

 
 
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The benchmark indices fell for fourth consecutive session on December 15 as bears tightened their grip over Dalal Street further. The BSE Sensex corrected more than 300 points to 57,788, and the Nifty50 dropped over 100 points to 17,221, weighed by selling pressure across sectors, barring auto.

The Nifty Midcap 100 and Smallcap 100 indices were also under pressure, falling 0.58 percent and 0.39 percent.

Stocks that were in focus included KIOCL, which was locked in 20 percent upper circuit at Rs 280.60, and Vardhman Textiles, which hit a record high of Rs 2,323.25, before closing with 5.83 percent gains at Rs 2,275.50.

Swan Energy was also in action, which surged 12.85 percent to Rs 141.85, while TVS Motor Company rose 2.07 percent to Rs 673.80.

Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today:

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TVS Motor Company

The stock recovered sharply on December 15 after trading with a negative bias for over a month. The up move started around its 50-EMA (exponential moving average) levels, with is a positive sign.

Considering its daily chart, we firmly believe that sustenance above Rs 700-mark is the key for further up move towards its 52-week high. Short-term traders are advised to go long above Rs 700, keeping stop loss below Rs 660 for a target close to Rs 800.

Vardhman Textiles

It is well placed on its short as well as long term charts, hitting higher highs from past two trading sessions and is now trading at its all-time highs in weak market conditions. This clearly indicates outperformance.

Hence, we advocate buying this stock at current market price for targets close to Rs 2,600 levels in 1-2 weeks. Traders must maintain stop loss below Rs 2,000.

KIOCL

Prolonged underperformance and sideways move halted on Wednesday as the stock price froze at 20 percent upper circuit. The up move was backed by multi-fold volume which suggests that fresh long positions have been carried forward in huge quantities.

All this suggests that the stock is in good hands and poised to head northwards in days to come. Hence, we suggest buying the stock at current market price and accumulating on dips for targets close to Rs 310 in 1-2 weeks in the longer run. Rs 350 can also be seen and keep a stop loss below Rs 250.

Swan Energy

It has been underperforming from many years, has not participated in the recent rally in Indian equity markets. Just on December 15, its stock price shot up to settle above its important moving averages.

As it was a single-day up move, it is not wise to rely on it as the overall trend is still weak. Firstly, the stock must consolidate above Rs 150 levels for some time then there will be chances that it may extend this move till Rs 170-180 levels.

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



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