Buy, Sell or Hold: What should investors do with AU Small Finance Bank, MMTC and Aavas Financiers?

The Indian market snapped a four-day losing streak ahead of monthly derivatives and the release of the US GDP data on Wednesday. Benchmarks Nifty50 and Sensex dropped 0.32% and 0.28% respectively tracking weakness from global markets. The former closed at 15,7999 and the latter ended at 53,026.  

In line with the benchmark indices, Nifty midcap and smallcap declined 0.44% and 0.56% respectively in the broader market on Wednesday.  

Sectorally, some buying interest was seen in oil & gas, metal, realty and auto stocks, while all other Nifty sectoral indices slipped in the red. Nifty Private Bank, IT, and FMCG were among the top losers on Friday.  

Consumer confidence is declining rapidly due to the uncontrolled & constant rise in inflation, said Vinod Nair, Head of Research at Geojit Financial Services, while reacting to Wednesday's closing. 

"India had to bear the double whammy effect of a dampening global equity market and rising crude prices as major suppliers like Saudi are unable to boost the output in the short-term," the expert added.  

Meanwhile some stocks came in focus on Wednesday as well. These stocks were AU Small Finance Bank, MMTC and AAVAS. AU Small Finance Bank declined more than four per cent , MMTC gained more than three and half per cent and Aavas Financiers ended with almost eight per cent gain on Wednesday. 

Here is what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, suggests one should do with these stocks.   

AU Small Finance Bank: The Counter is in the formation of a rising wedge pattern where the bulls are in Control of making higher highs and higher lows formation on the weekly chart. 

The overall structure is distorted as it trades below all its SMA moving averages, and the momentum indicators are also negatively poised. 

On the downside, Rs 560 is the strong support level where we can expect a bounce-back while on the upside, the level of Rs 650 is likely to act as an immediate hurdle. 

MMTC: The Stock is bottoming out with bullish inverse head and shoulder formation with the surge in volume. Stock is facing resistance at Rs. 40 level; above this we are expecting a long run-up towards 45 levels. On the downside, Rs. 37 is major support at any correction while 35 is the next critical support level. Momentum indicators are positively poised to support the current strength. 

AAVAS: Counter has done their meaningful correction from the higher level and formed the base around Rs. 1800. On the upside, 2400-2500 is an immediate supply zone above this stock may reach the 2800 level. On the downside, 1600 acts as a strong support level. 

(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.)