Buy, Sell or Hold: What should investors do with Godrej Agrovet, Ujjivan Small Finance Bank and JK Paper?

The Indian market ended with more than 2% gains on Monday on back of HDFC, HDFC Bank merger announcement news. The sentiments were also aided by softening crude, stable global market and FIIs regaining buying interest in the domestic equity market.  

The broader Nifty 50 gained over 2% to close above 18,000-mark, while the Sensex ended the day with over 1300 points gain as banking stocks, led by HDFC twins, drove the rally on Monday. Nifty Bank added more than 1400 points as the 12-share banking index closed near 38,600.  

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Nifty midcap and small cap indices added more than 1.5%, as Indian Volatility Index (VIX) cooled down to close around 18-mark.     

All sectors turned green on Monday; however, banking and financial services stocks were most active as Nifty Bank, Financial Services and Private Bank ended with gains of around 4%.     

Stocks that were in focus on Monday include Godrej Agrovet, which ended with over 19% gains, Ujjivan Small Finance Bank that settled 10% higher and JK Paper that rose 1.5% after hitting 52-week high.  

Here's what Jatin Gohil - Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:     

Godrej Agrovet : Buy on dips | Target: Rs740 | Time Duration: 3-4 Months  

In March’22, the stock tested its 61.8% Fibonacci Retracement level of prior up-move (Rs265-747), which was placed at Rs449.  

Later, the stock formed a double bottom around that Fibonacci level and resumed its up-move.  

Major technical indicators reversed from their oversold zone and were given buy signals on the medium-term timeframe chart.  

This could lead the stock towards Rs630 initially and Rs740 subsequently.  

In case of decline, the stock will find support around Rs450-440 zone.  

Ujjivan Small Finance Bank: Buy on dips | Target: Rs27 | Time Duration: 1-2 months  

Continuing its prior daily rising trend, the stock rose to one and half month closing high with relatively higher volume.  

Its weekly RSI witnessed a bullish divergence and is positively poised.  

On the higher side, the stock will face hurdles around its 20-week and 50-week EMAs, which are placed at Rs19 and Rs22, respectively.  

As per the current set-up, we believe the stock will manage to surpass those hurdles convincingly.  

The stock has potential to move towards Rs27 in the medium-term.  

On the lower side, the stock will find support around its 52-week low of Rs14.  

JK Paper : Buy on dips | Target: Rs398 | Time Duration: 3-4 Weeks  

On 1st April’22, the stock witnessed a breakout from a bullish flag pattern and recorded a new high of Rs340 thereafter.  

The key technical indicators are positively on major time frame charts. This could lead the stock towards Rs357 initially and Rs398 subsequently. In case of decline, the stock will find support around Rs290-280 zone.  

(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.)