Buy, Sell or Hold: What should investors do with Elgi Equipment, Bharat Dynamics and TVS Motors?

Indian market snapped 3-day winning streak to close the day in the red on Thursday. The S&P BSE Sensex plunged more than 700 points while the Nifty50 managed to hold on to crucial support near 17500-17550.

Sectoral buying was seen in auto, consumer durables index while selling pressure was visible in IT, realty, capital goods, and finance.

Stocks that were in focus include Elgi Equipment that closed with gains of nearly 6 per cent, Bharat Dynamics rose over 3 per cent and TVS Motor closed with gains of over 4 per cent on Thursday.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Elgi Equipment: Buy on Dips

We saw a sharp recovery from the lows of 315 levels. In the current week, the stock went into uncharted territories which signals that this counter resumed its long-term uptrend.

If the stock manages to sustain above 380 level this counter should eventually head to a much higher level. Based on channel studies on long-term charts, a higher target of 477 can be projected.

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While fresh buying for the long term can be considered on dips towards 380 levels with a stop below 370 on a closing basis short-term traders will be better off by squaring off their positions on a close below 400 levels.  

Bharat Dynamics: Hold

With new lifetime highs along with massive volumes, this counter seems to be on the verge of a big breakout from its 65-week-old Ascending channel. The said, a breakout will materialise if this counter sustains above 495 levels in the next trading session.

In that scenario, eventually, a higher target of 590 can be projected based on the channel breakout. For time being a fresh buying can be considered with a stop below 495 on closing basis for an initial target of 547.

TVS Motors: Buy on Dips

The way this counter recoiled on huge volumes with a decent price appreciation is hinting that it has embarked on a near term uptrend.

However, some hiccup is possible around 670 levels and the moment it closes above the said hurdle, positive momentum shall further strengthen with a target of 708 levels.

Therefore, fresh buying can be considered on slight dips with a stop below 626 levels for an initial target of 697. 

(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.)