Trade Spotlight | What should you do with TVS Motor, Exide Industries, RBL Bank on RBI policy day? (2024)

We believe history will repeat itself, wherein Exide Industries will rebound utilising prior consolidation and will move towards its 100-day SMA. This could lead the stock towards Rs 157 initially and Rs 163 subsequently.

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The market extended downtrend for the third straight session and closed with 1 percent loss on June 7, as traders turned cautious ahead of the interest rate decision and commentary by the Reserve Bank of India.

But holding above 16,400 by the Nifty50 on closing basis on Tuesday was slightly positive for the market, hence if sustains above same level on policy day then the index can march towards 16,800 mark, experts said.

The Nifty50 fell 153 points to close at 16,416 and the BSE Sensex declined 568 points to 55,107 on Tuesday, while the Nifty Midcap 100 and Smallcap 100 indices have corrected around six-tenth of a percent each.

The volatility also cooled down a bit but still holds 20 levels which a cause of concern for bulls and stability of the market. India VIX, the fear index rose by 1.1 percent to 20.43 levels.

Stocks that were in action and gained strength despite correction in the market included TVS Motor Company which climbed 2.1 percent to Rs 744, Exide Industries which rose 1.2 percent to Rs 148.3, and RBL Bank which advanced 1.4 percent to Rs 110.30.

Here's what Jatin Gohil of Reliance Securities recommends investors should do with these stocks when the market resumes trading today:

TVS Motor Company

On June 7, the stock formed a Bullish Engulfing pattern on the daily timeframe chart and poised for a fresh upmove. Above average volume and rise in future open interest (OI) signals that major market participants were in favour of the bulls.

Major moving averages are sloping upwards and the key technical indicators are positively poised. This could lead the stock towards its life-time-high of Rs 814. In case of any decline, the stock will find support around Rs 690, which coincides with its horizontal support line.

Fresh long position can be initiated at current juncture and on dips towards Rs 735 for a desired action.

Exide Industries

The stock remained sideways post a lower level recovery and poised for a further rise. Its daily relative strength index (RSI) crossed
50-mark after a positive cross-over. In the past, the stock extended gain after an identical formation w.r.t. its daily RSI and price has tested its 100-day simple moving average (SMA) subsequently.

We believe history will repeat itself, wherein the stock will rebound utilising prior consolidation and will move towards its 100-day SMA. This could lead the stock towards Rs 157 initially and Rs 163 subsequently.

Fresh long position can be initiated at current juncture and on dips towards Rs 146 for a probable rise.

RBL Bank

The stock formed a bullish reversal pattern – Double Bottom around Rs 101 and respecting that formation, oscillated in the narrow range subsequently.

The key technical indicators witnessed a bullish divergence on the short-term timeframe chart and currently, positively poised.

As per the current set-up, the stock may witness further up-move, which could lead the stock towards Rs 136. On the lower side, the stock will find support tad below the psychological level of Rs 100.

Fresh long position can be initiated at current juncture and on dips towards Rs 108 for a possible upside.

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.

Sunil Shankar Matkar

first published: Jun 8, 2022 06:50 am

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