Big movers on D-Street: What should investors do with Ultratech, Maruti and MMTC?

Equity benchmarks resumed their decline on Wednesday amid sluggish trends in global markets. The 30-share Sensex plunged 551 points to settle at 65,877, while the Nifty declined 140 points to end at 19,671.

Stocks that were in focus included names like Ultratech, which fell 0.17%, Maruti Suzuki, which gained 0.23%, and Trident, whose shares dropped 10% on Wednesday.

Here’s what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.

Ultratech Cement – Buy on dips
After a narrow range consolidation, the stock took support near 100 day SMA (Simple Moving Average) around 8250 level. The anchor VWAP band shows a crucial support within the range of 8240 to 8270 zone. Buy on dips would be the ideal play.

Any dip towards 8240 to 8270 levels would be considered as a fresh buying opportunity with a stop loss below 8200 for a target of 8325-8350.

Maruti Suzuki – Buy on dips
Despite the weak market sentiment, the stock held its strength. Currently the stock is trading well above 5 and 9 day EMA (Exponential Moving Average).

In addition, any pullback towards 10730 to 10750 would be a good buy opportunity with stop loss below 10650. Momentum would be extremely strong above that 10825 mark – towards the target of 10900-10950.MMTC – Buy on dips
After a sharp rally of 65% in the last one week; the stock touched a lower circuit of 10% today. With the stock trading well above 5 and 9 day EMA (Exponential Moving Average).

Any pull-back towards 72-73 should be considered as a good buy opportunity as per the anchor VWAP band with a stop loss below 65.

The stock witnessed a multi-year breakout and is now seen to re-test that breakout market. Targets remain open towards 100-120 levels.

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