Worried about promoters cutting stake? Here's tech view on Dabur, TVS Motor

Prominent promoters have recently offloaded stake in companies like TVS Motor, GMM Pfaudler via block deals, few others plan to do so in the near future.

Off late, select promoters have pared their holdings in the company by way of block deals on the exchanges. Prominent among these were - promoters of TVS Motor Company and GMM Pfaudler.

In early December, Srinivasan Trust, one of the promoters of TVS Motor sold shares worth Rs 262 crore at a price of Rs1,020 each in a bulk deal. Similarly, close to 11 million shares worth approximately Rs 2,278 crore of GMM Pfaudler were offloaded by the promoters last Friday.

Going ahead, Shapoorji Pallonji a well-known promoter of Sterling and Wilson RE is expected to trim 2.5 per cent stake in the compnay.  Also, Tech Mahindra has decided to sell-off 100 per cent stake in Dynacommerce Holdings B.V., a wholly-owned subsidiary of the company to Comviva Netherlands B.V.. 

Today, one of the promoters of the Dabur India, the Burman family, was expected to sale shares worth of Rs 800 crore via block deal.

As an investor if you are holding any of these shares, should you be worried or be patient.

Here’s a technical outlook of these stocks to help you understand the likely future trend:-

Dabur India Ltd (DABUR)

Outlook: Stock to rally towards Rs 610

The trendline breakout at Rs 560 in Dabur stock had propelled the upward bias to reach Rs 610 level in the early December. This momentum now looks to test the support of the trendline, currently set at Rs 555 level. The trend might see some weakness; however the underlying strength post the trendline breakout has initiated a medium-term bullish outlook, which sahll be intact as long as the stock defends the positive move above the trendline cushion. 

A bullish pullback is likely to revisit Rs 610 and may even further extent to Rs 635 mark. CLICK HERE FOR THE CHART

GMM Pfaudler Ltd (GMMPFAUDLR)

Outlook: Breakout over Rs 2,000

The overall trend for GMM Pfaudler has been sideways since September this year. The stock more or less is trading in range of Rs 2,050 to Rs 1,800 levels. Only a decisive move over the Rs 2,000 mark, precisely a strong close with volumes support, could result into a positive breakout, with stock showing intend to hit Rs 2,400 in the near-term. The immediate resistance for the stock exists at Rs 1,800-mark and support falls at Rs 1,500 level. CLICK HERE FOR THE CHART

TVS Motor Company Ltd (TVSMOTOR)

Outlook:  Support of 100-DMA

Shares of TVS Motor has negated the cushion of 50 Day moving average (DMA) set at Rs 1,082 level, indicating a negative bias for an immediate trend. However, on the lower side, the 100-DMA placed at Rs 1,035 continues to bolster the positive outlook. Technically, unless the stock slips decisively beneath the 100-DMA, the bullish trend may attempt to overcome the barrier of 50-DMA. CLICK HERE FOR THE CHART

Sterling And Wilson Solar Ltd (SWSOLAR)

Outlook:  Weakness may see Rs 200

While there was a bullish breakout of “Inverse Head and Shoulder” on the daily chart, the stock failed to cross the 200-DMA obstacle, leading to a decline back to lows of the said pattern, shows the daily chart. The bulls are now losing grip, with momentum turning in favour of bears. If the stock fails to exhibit a smart reversal, the trend could lead the stock towards the Rs 200-mark. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM)

Outlook: Stock if enters oversold territory then sell-off is inevitable

Shares of Tech Mahindra have broken the trendline support set at Rs 1,035 which propelled stock to hit Rs 1,120 recently. The current weakness may see exaggerated sell-off if the stock fails to bounce back. The following support comes in the range of Rs 980-Rs 970 levels. The technical indicator, Relative Strength Index (RSI) is seen entering the oversold territory, and the selling pressure may see elevation upon failing to show resolute reverse. CLICK HERE FOR THE CHART