Bharat Dynamics, Intellect Design Arena and MRF share: Buy, Sell or Hold—What should investors do with these stocks?

The domestic equity benchmarks Nifty50 and Sensex opened flat amid weak global cues on Monday. The broader Nifty50 started near 17,550, while the Sensex declined almost 100 points to open around 58, 750.  

Underperforming benchmarks, Nifty Midcap and smallcap declined almost 0.5% each in the opening trade. Among sectoral indices, PSU Bank outperformed, gaining almost one per cent, while oil & gas index too gained amid reduction in windfall tax on domestic crude and ATF exports.  

The near-term texture of the market has turned weak and the buy on dips strategy is unlikely to work in the present risk-off global environment, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

"FIIs turning sellers is a short-term negative. The market is likely to take a decisive trend only after the Fed policy announcement on 21st September," the expert added.  

Earlier, certain stocks came in focus on Friday. These stocks were Bharat Dynamics Limited (BDL), Intellect Design Arena and MRF. Shares of BDL gained over six per cent or Rs 53.05 to close at Rs 921.95 per share on Friday. Similarly, Intellect Design Arena share price ended lower by 4.7% or 27.55 to Rs 558.30 apiece and MRF declined 7.29% or by Rs 6760.80 to 85990.00 on Friday.    

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with following stocks on Monday.   

Bharat Dynamics Limited (BDL): 

In this quarter so far, the stock rallied over 35 percent. On last Friday, the stock gained 5 percent and registered a fresh all-time high of Rs 976. On daily and weekly charts, the stock has formed a promising uptrend continuation formation, and it has also formed a long bullish candle, which is broadly positive.  We are of the view that the medium-term texture of the stock is on the positive side, but due to short-term volatile broader market conditions, we could see some profit booking at higher levels.  Hence, buying on dips and sell on rallies would be the ideal strategy for the short-term traders. 900 and 870 would be the key support zone. As long as the stock is trading above the same, the uptrend wave is likely to continue. Above which, it could move up to 975-1000. On the flip side, below 870, traders may prefer to exit out from the trading long-positions.  

Intellect Design Arena 

In the last week, the stock corrected over nine percent. From last couple of months, the stock has been consistently facing selling pressure at higher levels. In addition, on weekly charts, it has formed a long bearish candle, which indicates a further weakness from the current levels. Further, it has also formed lower top formation that supports short-term weakness. For the traders now 600 or 20-day SMA (Simple Moving Average) would act as a trend decider level. Below 600, it could slip to 525. A further downside may also continue, which could drag the stock up to 500. On the flip side, a fresh pullback rally is possible only after 600. Above which, there is a strong possibility of minor pullback rally up to 615-620.  

MRF: 

After a range breakout formation last Friday, the stock corrected over 7 percent. The current stock structure is extremely volatile. We are of the view that the short-term texture of the stock is non-directional. Perhaps, traders are waiting for either side confirmation. For the bulls, now 90,000 would be the important breakout level to watch out for. And if the stock manages to trade above the same, we can expect a fresh uptrend rally towards 95000-100000. On the flip side, trading below 84,000 or 50-day SMA (Simple Moving Average) may increase further weakness up to 82000-80000.   

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)