Buy, Sell or Hold: What should investors do with Gujarat Alkalies, GSFC, Rashtriya Chemicals?

Indian equity market ended the first trading session of the week with more than 1% gains on Friday. The Nifty50 added 1.18% and the Sensex jumped 708 points to close at 17,670.45 and 59,276.69 respectively on Friday. Barring Pharma and healthcare indices that settled with marginal cuts, all sectoral indices turned green in the Friday's closing.  

Nifty Bank too added nearly 800 points as the 12-share banking index closed above 37,100.
In the broader market, Nifty midcap and small cap indices sat in the green as they closed higher by 1.49% and 1.68%.  

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Meanwhile, the stock market ended on a positive note on four out of 5 closings last week as benchmarks closed with around 3% gains each for the week ended April1, even as geopolitical concerns and volatility in crude prices continue to impact domestic stock market.  

Stocks that were in focus on Friday included Gujarat Alkalies, GSFC and Rashtriya Chemicals. Gujarat Alkalies closed with nearly 6% gains, GSFC added over 7% and Rashtriya Chemicals surged by more than 5% on Friday's closing.  

Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd., recommends investors should do with these stocks when the market resumes trading today:  
 
Gujarat Alkalies:
On April 1st the stock made a fresh all-time high of 962.  post short-term correction the stock took the support at 600 and from there it rallied over 60 percent.   On daily and weekly charts, the stock is holding higher high and higher low series formation   which is broadly positive for Gujrat Alkalies and Chemical Ltd. However, on short term time frame, momentum indicators indicate stock is in to the overbought zone and high chances of quick short term price correction is not ruled out if it trading below 900 For the next few trading session 900-890 would be the trend decider level for the bulls, sustain above the same we could expect continuation of uptrend up to 1000-1050 On the flip side, dismissal of 890 could possibly trigger quick short-term correction till 840-820.  

GSFC:  
The stock made yet another all-time high of 175.90 on 1st April.  On the last Friday, the stock opened with a positive note and successfully clear the short-term resistance of 170. a fresh intraday breakout formation indicating further upside in the near future.  On daily and weekly charts stock has formed breakout continuation pattern which is grossly positive for the Gujrat state fertilizers & chemical Ltd. For the next few trading session 165-162 would be the trend decider level for the bulls, sustain above the same we can expect continuation of uptrend up to 190. Further uptrend may also continue which could life the stock to 205. On the flip side, dismissal of 162 could possibly trigger quick short-term correction up to 155-151.  
 
Rashtriya Chemicals:
In the past week, the stock rallied over 15 percent. During the week, it effectively cleared the resistance of 85 and after a long time, on weekly charts it succeeds to close above the same.   On the short-term time frame stock has formed strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if stock succeeds in trading above 88 level. For the swing traders now, 88 would be the sacrosanct level to watch out, above which we can expect an uptrend continuation wave up to 105-110.

(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)