Equity indices tumbled nearly 1% on Thursday due to heavy selling in market heavyweights as investors turned nervous over earnings growth concerns amid unabated foreign capital outflows.Stocks that were in focus include names like TCS, which fell 1.6% and Tata Elxsi, which declined 0.4% and IREDA, whose shares dropped 3.4% on Thursday.Here's what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.TCSThe share price of TCS has recently experienced a decline due to profit booking, trading over 12% lower than its record high of 4,592. The recent selling pressure observed on the daily timeframe has been accompanied by increased selling volume, resulting in the price trading below key moving averages such as the 50 and 200-day.These averages not only serve as immediate overhead resistance but also indicate a continuation of bearish trends and a weakening price strength. Additionally, the stock has shown deteriorating relative strength compared to the Nifty50 index and has experienced heightened volatility, raising the likelihood of erratic price movements.Consequently, we advise against purchasing the stock, as a close below the demand level near 3,990 is expected to invite further selling pressure.Tata ElxsiThe share price of Tata Elxsi has been oscillating within a broader range of 46%, which has resulted in a lack of clear directional bias. This period of consolidation follows an impressive surge of over 2000% since the lows experienced during Covid, suggesting that more astute investors are choosing to maintain their positions and thereby limit potential drawdowns—a positive indicator.Currently, the price is hovering near the demand zone around 6280; however, it remains below key moving averages such as the 50-day and 200 DMA, accompanied by a negative crossover and WMA. Although the stock has shown improved EPS strength, it is currently hindered by insufficient buyer demand.Therefore, we recommend avoiding the addition of new positions while suggesting that existing holders maintain their stakes.IREDAThe share price of IREDA has started to show early signs of stabilizing after experiencing a significant 41% correction from its record high of 310. In recent trading sessions, the stock has successfully reclaimed the 50 and 200-day moving averages, alongside improving relative strength compared to the Nifty50 index.This positive shift has, in turn, boosted buyer demand for the stock. Additionally, IREDA has exhibited lower relative volatility, reducing the likelihood of erratic price movements. The RSI across daily and higher timeframes is currently trading well above its median, indicating strong bullish momentum.We recommend purchasing shares of IREDA with a target price of 245 and suggest maintaining a stop loss at 208.(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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