Buy, Sell or Hold: What should investors do with Hindalco and GNFC?

Indian market closed in the green on Thursday for the third consecutive day in a row. The S&P BSE Sensex rallied more than 450 points while the Nifty50 closed above 17600 levels.

Sectorally, buying was seen in power, metals, banks, finance, and IT while mild selling was seen in capital goods stocks.

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Stocks that were in focus include Hindalco which closed flat after hitting a fresh 52-week high, and GNFC closed with gains of over 4 per cent on Thursday.

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

Hindalco: Buy on a close above Rs 554

Albeit hitting new lifetime highs, this counter registered a Doji kind of indecisive formation. Hence, it needs a strong close above the 551 levels to retain strong upward momentum in line with new lifetime highs.

In that scenario, eventually, a higher target of 597 is required. However, a close below 541 can infuse temporary weakness which can drag down the index towards 514 levels.

But such a correction can be considered as an opportunity to go long. For time being it looks prudent to buy only on a strong close above 554 levels and look for a higher target of 590 levels. 

GNFC: Hold

This counter seems to have registered a fresh breakout after a multi-week consolidation that lasted for almost 17 weeks. Therefore, sustaining above 541 levels it can head towards 597 levels.

However, a close below 541 levels shall induce weakness which can drag down this counter close to 510 levels which can be considered as a good buying opportunity.

For time being traders who are invested in this counter shall hold with a stop below 540.