Buy, Sell or Hold- What should investors do with GNFC, Trident and Voltas?

Extending losing streak, the Indian markets closed in the red for the third day on Tuesday. Besides weak global cues, the domestic equity market was dragged by selloff in metal, energy and realty stocks. Benchmarks Nifty50 and the Sensex closed lower by 0.38% and 0.19% as the former closed near 16,200 and the latter shed more than 100 points on Tuesday.  

In the broader market, underperforming benchmarks Nifty midcap and small cap declined by 1.8% and 2.2% respectively.    

Sector-wise, almost all sectors slipped into the red with some buying interest seen in banking, financial and FMCG stocks.  

"The resistance of Indian market has started to move in tandem with the world market. The support from DII & retail investors is reducing after the heavy selloff unsteadying their optimism," said Vinod Nair, Head of Research at Geojit Financial Services. 

Meanwhile, despite weakness in the market, some stocks were in focus due to their movement on either side. The stocks those were in focus on Tuesday were Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Trident and Voltas. GNFC touched upper circuit and closed with over 8% gains, Trident rose nearly 4% and Voltas dropped more than 5% on Tuesday.  

Here is what Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, recommend investors should do with these stocks when market resumes trading on Wednesday.  

 GNFC | BUY | Target Price: Rs 885 | Stop Loss: Rs 795 

Shares of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) surged over 10% in morning trade after it reported the quarterly numbers for Q4 March 2022. The standalone net profit of GNFC increased by 108.24% to Rs 643.26 crore and the company’s net sales increased by 59.93% to Rs 2771.71crore in the last quarter of FY2021-22. On the technical front the stock has formed a bullish continuation pattern Flag in Daily chart and Momentum oscillators RSI head upward which is bullish for the stock. 

Trident | BUY | Target Price: Rs 57 | Stoploss: Rs 47.40 

The share price of Trident rebounded sharply from the lower level to hit its 5% upper circuit. At this juncture, prices are trading in the crucial range between 47.50 (Key support level) & 51.50 (100 DEMA). Sustaining above 47 is the key factor for the short-term perspective. If the price sustains above the 100 DEMA for two consecutive sessions, then it may extend the rally until 57. 

Voltas | SELL | Target Price: Rs 920 | Stoploss: Rs 1045 

The Share price of Voltas tumbled over 23% in seven trading sessions. At the current juncture, the stock is coming out of nine months consolidation along with a rise in volume. Momentum oscillators RSI continue its Lower High formation and MACD indicator sustaining below zero levels with negative crossover suggest the further downward movement in the price.