Buy, Sell or Hold: What should investors do with IEX, Sterling & Wilson & Tata Power?

Indian market closed in the green for the third consecutive day in a row. The Nifty50 hit a fresh high above 18000 for the first time while the S&P BSE Sensex closed above 60,100 levels.

Sectorally, buying was seen in utilities, power, auto, and metal stocks while selling pressure was visible in IT, telecom, and energy stocks.

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Stocks that were in focus include IEX that rose nearly 12 percent, Sterling & Wilson was up nearly 6 percent, and Tata Power closed with gains of over 8 percent. All stocks hit a fresh 52-week high on Monday.

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

IEX: Uptrend likely to continue

The stock extended gains post upward consolidation and recorded a new high of 798.70 on 11th of Oct’21. Since Jun’21, the stock ended the month on a positive note and has already rallied 115 percent rise so far.

The key moving averages are sloping upwards on medium-term as well as long-term timeframe chart. As per the current set-up, we believe that the prevailing rising trend will continue, which could lead the stock towards Rs1,000.

Fresh long position can be initiated at the current juncture and on dips towards 715. In case of decline, the stock will find support at around Rs635.

Sterling & Wilson (SWSOLAR): Buy

After recording about 90 percent decline from its lifetime-high of Rs753.45, the stock found support at around Rs70.

Later, the stock witnessed a gradual recovery and managed to erase partial damages. Since Jun’21, the stock remained upbeat.

Major technical indicators are positively poised. The stock has the potential to move towards 550-665-753 levels in the medium term.

A fresh long position can be initiated at the current juncture and on dips towards 425. In case of decline, the stock will find support at around Rs380.

Tata Power: Initiate fresh longs

In Feb’21, the stock witnessed a breakout from the falling channel and resumed its northward journey. The stock zoomed by 153% YTD (year-till-date).

The key technical indicators are positively poised and major moving averages are sloping upwards.

We believe that undergoing positive momentum will continue, which could take the stock towards Rs280 in the long run. Though the overall view is bullish for the stock as well as the power sector, higher-level profit booking cannot be ruled out.

Fresh long position can be initiated only on dips towards Rs175. In case of decline, the stock will find support at around Rs135, which coincides with its 20-week EMA.

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.