Buy, Hold, Avoid and Sell: SBI, Tata Motors, IT sector, M&M Fin - analyst suggests strategy for gains, avert losses

The stock markets lacked vigour on Tuesday and were trading almost flat, albeit with some positive bias. The 30-share BSE Sensex was trading at 60,186.70, up by 50 points or almost 0.08 per cent. Meanwhile, the broader Nifty50 index was trading at 17,956.40, up almost 10 points or 0.06 per cent.  

Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, picks certain stock and sectors for investors and believes must be closely looked at before taking an investment call. 

See Zee Business Live TV Streaming Below:

He, however, puts a caveat that his recommendations are based on the technical analysis of the stocks and not based on the fundamentals. 

Stocks to Buy – SBI – Jain said that he was bullish on State Bank of India (SBI), a Nifty PSU Bank heavyweight. He said that the stock looks good for a target price of Rs 500 in short term basis. The next targets are Rs 520 and Rs 550 over a positional term basis. 

SBI stocks were trading at Rs 474.15 on the NSE on Tuesday and were up 1 per cent. 

Stocks to Hold – Jain said that invest in Tata Power Company Limited, NTPC Limited, Coal India Limited (CIL) as the power sector.  

He had recommended Tata Power for a target of Rs 220-Rs250 with a stop loss at Rs 165. On Tuesday, this share was trading around Rs 193, and was up almost 1 per cent around this time.  

Jain said that NTPC was looking positive for a price target of Rs 160. He puts the stop loss at Rs 135. It was trading at Rs 144.50, down 0.2 per cent from the Monday closing price. 

Coal India shares were trading at Rs 194.45, down 1.22 per cent. He had recommended a buy for a price target of Rs 220 in the short term and Rs 235 in the positional term.  

Stocks to Avoid – The technical analyst said that the investors must avoid any fresh positions in IT stocks after Tata Consultancy Limited’s below par earnings results. 

Stocks to Sell – He recommended Mahindra & Mahindra Finance Limited as a stock to sell now for the target of Rs 170. He puts the stop loss at Rs 189. The stocks were trading at Rs 183.20 around this time and were down almost 1 per cent from the Monday closing price. 

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