Major Stock Moves: What Should Investors Do with Trent, Sobha, and SpiceJet Now?

India’s benchmark indices, Sensex and Nifty, rebounded sharply on Tuesday, ending a six-day losing streak thanks to a surge in heavyweight stocks.

Among the big movers were Trent, which rose by 8%, Sobha, up by 0.6%, and SpiceJet, whose shares jumped 9% on Tuesday.

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Here’s what Viral Chheda, Senior Technical Analyst at SSJ Finance & Securities, suggests for investors as the market reopens today:

Trent

After finding support at its 50-day moving average (DMA) of 5095 in July 2024, Trent has been on a strong upward trend, hitting a new all-time high of 7940. The stock has surged 60% from its July lows as bulls have dominated the market. In the past week, the stock formed a Descending Triangle Pattern but broke through it with high volume on Tuesday, reaching new highs.

The Stochastic Oscillator is showing an upward trend, supported by increased trading volume, signaling further upside potential with minimal downside risk. Chheda recommends buying Trent at its current level, with more purchases at dips around 7500. He advises setting a stop loss at 7000 on a weekly closing basis and sees potential for the stock to rise to 9500–10500 over the next 10-12 months.

Sobha

Since hitting a low of 1171 in March 2024, Sobha has seen a strong rally, rising to an all-time high of 2155—a gain of 84%. The stock formed a Higher Top Higher Bottom pattern, indicating strength in its upward movement. However, over the last four months, some profit-taking has pulled the stock down to around 1650, a key support level.

As long as the stock holds above this support, a rebound is possible. For long-term investors, Sobha remains a good buy, especially on dips. The Stochastic Oscillator is in the overbought zone, but a pullback could occur soon. Chheda advises buying at the current level, with more buys around 1680 and a stop loss of 1600 on a weekly closing basis. He sees the stock potentially climbing to 1875–2050 over the next 10-12 months.

SpiceJet

After hitting a double bottom around 46 in July 2024, SpiceJet’s stock surged to a three-year high of 80, a 74% gain. However, the stock has since corrected by about 53%, falling back to the 56 range. For the past week or so, SpiceJet has traded between 56 and 69, with a breakout either way expected to move the stock by 20-25%.

Given the stock’s low daily trading volume and weak business performance, Chheda advises avoiding SpiceJet for now, recommending investors look for better opportunities elsewhere.