Buy, Sell or Hold: What should investors do with BSE, Devyani International & LA Opala?

Indian market rallied more than 1 per cent on Wednesday for the second consecutive day in a row pushing the S&P BSE Sensex back above 58000 while the Nifty50 reclaimed 17400 levels.

Sectorally, buying was seen in auto, telecom, IT, Consumer Discretionary, and metals stocks.

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Stocks that were in focus include BSE which closed with gains of about 6 per cent. Devyani International which closed with gains of over 9 per cent and La Opala rising 8.8 per cent were two other stocks that created top buzz.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

Devyani International: Buy above Rs 184

Devyani international witnessed a sharp surge following a breakout from an inverse Head and Shoulder formation; however, it has achieved the pattern target.

Wednesday’s high of 184 is placed at upsloping trendline resistance therefore we expect some cool off from here. On the downside, 168 will act as immediate support while 157 will be a critical support level.

If the stock manages to cross 184 mark then we expect a move towards the psychological level of 200.

BSE: Overbought

BSE is resuming its bullish momentum after a breakout of bullish flag formation where the momentum is likely to continue towards the 2250 level.

Momentum indicators are overbought but they may remain overbought for some more time. On the downside, 1930-1830 will act as an immediate demand zone while 1700-1640 will be the next important support area.

LA Opala:  

LA Opala has broken out from 5 years of consolidation and then witnessed strong positive momentum. In the long term, this counter may head towards 750-1000 levels.

Momentum indicators are overbought in the near term that may lead to some consolidation or minor correction, but the correction will provide a buying opportunity.  

On the downside, 385-370 will be the first demand zone while 350-325 will be the next strong support area.

(Disclaimer: The views/suggestions/advices 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.)