Big Movers on D-St: What should investors do with Apollo Tyres, Vedanta and Ceat? – Blue Barrows

New Delhi: Domestic equity markets bled sharply on Friday, with Nifty50 falling almost 350 points to settle at 17,530.85.

Weakness was seen across the sectors as all indices ended the week with big cuts. IT, realty, and media indices tanked 4 per cent each, while the auto index weakened 3 per cent. Financial services, banks and consumer durables were also dented.

A host of stocks were buzzing on Dalal Street, including

which plunged over 7 per cent, which shed 4 per cent after hitting new 52-week highs, and which lost 6 per cent.

Here’s what Santosh Meena, Head of Research, recommends investors should do with these stocks when the market resumes trading today:

Vedanta: Buy
Shares of Vedanta plunged 7 per cent to Rs 290.60 after the company’s clarification over entering the semiconductor business by its holding company Volcan Investments.

After gaining about 20 per cent in the last five sessions, on the back of positive news flow, the mining major saw a knee-jerk reaction to the company’s clarification submitted to the bourses.

After making higher highs and higher lows, the counter has given a compressive move and delivered a massive action after a breakout from 100-SMA at around Rs 280 levels.

On the downside, Rs 275-280 is an important and immediate demand zone. On the upside, Rs 320 is an immediate susceptible area. Above this, we can expect a run-up towards Rs 360 levels in the near term.

Apollo Tyres: Buy
The tyre company hit new lifetime highs on Friday, surpassing Rs 300 mark as the company launched a range of tyres for premium motorcycles, other than softening of raw material prices and a fall in crude oil.

The counter is in a classical uptrend and has witnessed a breakout of long consolidation on the weekly chart. The overall structure is very bullish as it trades above all-important moving averages.

One can take a position at any dip around Rs 260 as it created a strong base at 20-DMA for a target of Rs 320.

Ceat: Buy

After zooming 20 per cent on Thursday, the tyre maker hit its new 52-week high of Rs 1,787.75 on Friday. However, the stock saw some profit booking dropped 4 per cent.

The company’s management has laid out the strategic roadmap in its annual investor meet. Increasing market share across key segments and ramping up exports are some of the key focus areas for the management.

The counter is coming out of a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages. The structure of the counter looks lucrative on the daily chart, but we are expecting booking profit at a higher level.

One can take a position at 9, 20-SMA around Rs 1400 levels for the target of Rs 2000 while on the downside Rs 1200 is the important support level in the near term.

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