Buy, Sell or Hold: What should investors do with Ceat, Birlasoft and Edelweiss Financial Services?

Stocks in focus: The India market closed in the red for the fourth session on Thursday tracking weakness in the gobal markets. The broader Nifty50 slipped below 16,000 and the Sesex dropped by nearly 100 points as the benchmark indices took a 0.18% cut each.  

"The Nifty had a decent pullback from around 15200 to 16200 in the last few weeks. Multiple technical parameters posed as stiff barriers near 16200. Consequently, the index had a brief distribution near 16000-16200 recently and has slipped into a short-term correction mode once again," said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas. 

The index is now approaching the lower end of a rising channel on the hourly chart & the 20 DMA, which are near 15800-15850, said Gaurav.  

"Overall structure shows that the index has a potential to break this near term support zone and head lower towards 15500. On the other hand, 16000-16050 is expected to act as a near term hurdle & any bounce towards that area can be taken as a fresh selling opportunity," he said.  

Meanwhile, certain stocks came in focus on Thursday. These stocks were Ceat, Birlasoft and Edelweiss Financial Services. Ceat closed with almost five per cent gains, Birlasoft dropped a little over eight per cent and Edelweiss Financial Services ended higher by four per cent on Thursday 

Here is what Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, suggests one should do with following stocks 

1.       Ceat 

The stock has been witnessing strong traction since the last couple of weeks. In the last week it crossed the 200 DMA, which is now acting as a support for the counter. Today’s intraday dip received support near that crucial moving average from where the stock started rallying again. Going ahead, 1325 & 1430 will be the targets from medium term perspective   

2.       Birlasoft 

The stock has been in a downtrend from the short term as well as medium term perspective. Recently, it made an attempt to cross its key daily moving averages, however it couldn’t succeed. Thereon, it has started sliding down again. The daily and the weekly momentum indicators are showing further downside potential. The stock can continue to slide towards 300-295 zone. 

3.       Edelweiss Financial Services 

The stock has seen a multi week base formation & has started a fresh leg on the upside. The weekly chart shows that the stock has broken out on the upside from a Double Inside bar pattern. The short term & the medium-term momentum indicators have turned in favor of the bulls. On the higher side, 65-66 will be the initial target area for the medium term with the potential to stretch till 75 

(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.)