Buy, Sell or Hold: What should investors do with Hikal, Au Small Finance Bank and Laurus Labs?

Indian market closed in the green for the fourth consecutive day in a row on Wednesday. The S&P BSE Sensex closed above 60,000 while the Nifty50 reclaimed the 17900 level towards the close.

Sectorally, buying was seen in banks, metals, oil & gas, and realty stocks while selling was seen in IT, power, and healthcare stocks.

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Stocks that were in focus include Hikal Ltd that closed with gains of nearly 6 per cent, AU Small Finance Bank rose nearly 7 per cent, and Laurus Labs closed with gains of over 1 per cent on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

Hikal: Buy

The counter is coming out from a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages.

The pattern suggests an immediate target of Rs 700 but at the same time, it has the potential to move further.

On the downside, Rs. 520 will act as an immediate support level while 480 will be the next important support level.  MACD witnessed centreline crossover on the upside while the Relative Strength Index (RSI) is also positively poised.

Laurus Lab: Hold

The counter is trying to create a strong base around 460 level after a meaningful correction; however, 555-575 is a critical resistance zone that it has to take out to gain any further strength.

If it manages to take out 575 level then 590-625 will be the next target levels. On the downside, the cluster of 50 and 20-DMA around 510 will act as an immediate support level. 

Indicators like MACD and RSI both are positively poised; however, ADX is not supporting the current strength.

AU Small Finance Bank: Buy

The counter is moving in a wide range of 900-1400 for the last year where it witnessed a smart bounce back from a lower level after a sharp cut and managed to close above important moving averages.

The level of Rs 1,250 is an immediate and horizontal resistance where any decisive move above this level can lead to a move towards a higher level of 1400. On the downside, 200-DMA of 1135 is an immediate support level while 1080 will be the next important support level.

RSI has moved above the 60 mark that may generate more thrust whereas ADX is also supporting the current strength.

(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.)