Buy, Sell or Hold: What should investors do with Avanti Feeds, JSW Energy and Ambuja Cements?

The domestic equity market ended the last day of the holiday-shortened week lower amid q4 earnings season as benchmarks Nifty50 and the Sensex closed 0.31% and 0.41% lower. The Nifty50 dropped more than 50 points to slip below 17,500, while the Sensex declined nearly 250 points to settle around 58,300. The indices closed in the red on all three sessions which saw trading last week.  

The 12-share Nifty Bank too declined nearly 300 points as the banking index closed below 37,500 

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Meanwhile, Nifty midcap index fell flat, while the small cap index rose 0.19% on Wednesday.  

Sector-wise, FMCG, metal, oil & gas, pharma and healthcare saw some buying interest in an otherwise weak market, while all other sectors largely trade in negative. Banking and financial stocks were the worst hit with HDFC twins leading the drag. 

Stocks that were in focus on Wednesday included Avanti Feeds, JSW Energy and Ambuja Cements. Avanti Feeds closed with more than 6% gains, JSW Energy dropped over 4%, while Ambuja Cements ended nearly 3% higher on Wednesday.  

Here is what Amol Athawale, Deputy VP, Technical Research, kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading on Monday 

AVANTI FEEDs: 

In this month so far, the stock rallied over 20 percent. Last Friday, despite tepid market conditions, the stock opened with a strong note and successfully cleared the resistance of 480. A strong price volume intraday rally indicating further uptrend from the current levels. in addition, after a long time the stock hit the level of 500 and succeed to close above 50-day SMA. for the breakout traders, 475- or 50-day SMA would act as a key support level. above which the uptrend wave will continue till 525-550. 

JSW ENERGY: 

Recently the stock cleared the medium-term resistance of 350 but due to consistent profit booking it failed to sustained above the same. However, the medium-term texture is still on the positive side but in the short term the stock witnesses profit booking at 350 resistance level. We are of the view that, currently the stock is showing non directional activity, for the bulls a fresh uptrend rally possible only after 350 breakouts. above which it could rally to 370-380. On the flip side, 320 would be the immediate support level, below the same fresh round of selling is not ruled out. Below 320 it would retest the level of 310-300. 

AMBUJA CEMENTS: 

After a long correction, eventually the stock took the support near 280 and bounce back sharply. In this month so far, it rallied 23 percent.  On daily and weekly charts, the stock has formed a strong bullish candle which is broadly positive.  For the trend following traders, 350 and 355 would be trend decider level.  above the same the uptrend texture is likely to continue till 385-395. On the flip side, below 350 uptrends would be vulnerable.   

(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.)