Big Movers on D-St: What should investors do with Dixon Technologies, Adani Enterprises and Adani Ports?

Indian markets fell more than 1% on Friday for the second consecutive trading session in a row. The S&P BSE Sensex was down nearly 900 points while the Nifty50 broke below 17700 levels.

Sectorally, buying was seen in auto and healthcare stocks while selling was visible in utilities, power, oil & gas, and energy stocks.

Stocks that were in focus include names like Dixon Technologies that fell more than 19%, Adani Enterprises plunged more than 18%, and Adani Ports was down by over 16% on Friday.


Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. at recommends investors should do with these stocks when the market resumes trading today:

Dixon Technologies: Sell
In Friday’s trading session, the counter witnessed a breakdown from a Head & Shoulder pattern formation with huge volumes.

The structure of the counter is distorted as it is trading below all its important moving averages. It has broken a downward-sloping channel formation on the daily chart.

The momentum indicators RSI (relative strength index) and MACD (moving average convergence divergence) are negatively placed.

On the downside, Rs. 2600 is the important psychological support level, below which we can expect the Rs 2400 level during any correction, while on the upside, Rs. 3000 is the resistance level, above which we can expect the 3200 level.

Adani Enterprises: Avoid
The counter has witnessed the breakdown from an upward-sloping channel on the longer time frame while witnessing a breakdown of a long consolidation pattern on the shorter time frame with strong volume.

The counter closed today's trading session below its 200-day SMA moving average. On the downside, Rs. 2400 is the important psychological support level, while on the upside; Rs. 2900 is the resistance level.

Adani Ports: Avoid
The counter has witnessed a breakdown of a long consolidation pattern on the daily chart with strong volumes. The counter's overall structure is distorted because it is trading below all of its important moving averages.

It has broken neckline support at Rs. 635 and entered a free fall at Rs. 530.

On the downside, Rs. 500 is the important psychological support level, while on the upside, Rs. 640 is the resistance level, above which we can expect the 700 level.

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