Buy, Sell or Hold: What should investors do with Canara Bank, Brigade Enterprises and SPARC?

Indian markets closed in the green on Wednesday with gains of over 1 per cent for the third consecutive day in a row. The S&P BSE Sensex rallied nearly 700 points, while the Nifty50 closed below 17,800 levels.

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Sectorally, buying was seen in banks, finance, consumer durables, healthcare stocks. On the broader market front – the S&P BSE Smallcap index rose 1.5 per cent, and the S&P BSE Mid-cap index closed with gains of 1.08 per cent.

Stocks that were in focus include Canara Bank, which closed with gains of over 4 per cent; Brigade Enterprises rose nearly 4 per cent, and SPARC closed with gains of over 5 per cent on Wednesday.

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

Canara Bank: Buy

The counter is in a classical uptrend and witnessed a breakout of bullish flag formation with strong volumes. The overall structure is very bullish as it trades above its all-important moving averages.

The pattern suggests an immediate target of Rs 300-320, while it has the potential to move further upside.

On the downside, Rs. 240 will act as an immediate support level. Most of the momentum indicators are supporting the current strength.

Brigade Enterprises: Buy

The counter is coming out of consolidation with a breakout of Rectangle formation on the daily chart. It formed a base around Rs. 480 at 20 & 50-DMA and we are expecting Rs. 600+ levels in the near term.

On the downside, Rs. 500 is major support at any correction while 480 is the next critical support level. The momentum indicator, RSI, witnessed a positive crossover and moved above the 60 mark.

SPARC: Buy

The counter is forming a bullish flag formation with a base at 20-DMA. A decisive breakout of 333 level may lead to a fresh leg of rally towards 375/400 level while 310-303 has become a strong base.

Momentum indicators such as ADX are trading above 40 levels whereas RSI witnessed a positive crossover after taking support at the 50 mark.

(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.)