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Big Movers on D-St: What should investors do with RBL Bank, Bajaj Finance and M&M Finance? – Economic Times

Indian market plunged nearly 3 per cent on Monday tracking the bloodbath in global peers. The S&P BSE Sensex tanked over 1,400 points while Nifty50 closed below 15800 levels.

Sectorally, selling pressure was visible in IT, metals, public sector, finance, and bank stocks. The S&P BSE Midcap index was down by 2.7 per cent, and the S&P BSE Smallcap fell by more than 3 per cent.

Stocks which were in focus included names like

which fell by more than 22 per cent, which was down by 5 per cent, and M&M Finance which fell by over 6 per cent on Monday.

Here’s what Jatin Gohil, Technical and Derivative Research Analyst at Securities recommends investors should do with these stocks when the market resumes trading today:

RBL Bank: Recommendation: SELL | Target: Rs60 | Stop Loss: Rs102 | Time Duration: 3-4 Weeks
Post a Head and Shoulder breakdown, the stock remained under tremendous pressure. On June 13, 2022, the stock extended its losses and violated its prior swing low of Rs101.55 to slip to a record low of Rs 86.35.


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The key technical indicators are negatively poised on the medium-term timeframe chart, while short-term indicators reversed from the threshold levels and gave a sell signal.
As per the current setup, a further decline cannot be ruled out, which could drag the stock towards its pattern breakdown point of Rs 60 (i.e. 100 points down from its neckline).

In case of a pullback, as per the change in polarity principle, its prior support will work as a resistance.

Bajaj Finance: Recommendation: SELL | Target: Rs4,500 | Stop Loss: Rs5,770 | Time Duration: 3-4 Weeks
Since mid-May’22, the stock oscillated around its upward sloping 100-week SMA and tried to limit the loss.

On Monday, the stock crossed that moving average convincingly and slipped to a fresh 52-week low of Rs5,325.

The key moving averages are sloping downwards on the short-term timeframe chart and the technical indicators are also in favour of the bears. As per the current setup, we believe that the stock will remain under pressure.

The stock could move towards Rs5,000-4,800-4,500 in the short term. On the higher side, the stock will now face a hurdle around its 100-week SMA, which is placed at around Rs5,770.

M&M Finance: Recommendation: SELL | Target: Rs113 | Stop Loss: Rs187 | Time Duration: 3-4 Weeks
Since Jul 2019, multiple times the stock reversed after testing its 200-week SMA and witnessed a fall of 37-69 per cent. On the week ended June 10, 2022, again the stock tested that moving average and resumed its down move subsequently.

The key technical indicators are in favour of the bears on weekly as well as daily timeframe charts. We believe the stock may witness an identical fall after testing that moving average and may test lower levels.

This could drag the stock towards its prior medium-term support zone initially and its lowest level of Sep’20 subsequently. On the higher side, its 200-week SMA will continue to cap the up-move.

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