Buy, Sell or Hold: What should investors do with IndusInd Bank, United Spirits and PNB?

The Bears took the control of the D-Street on the October F&O expiry day on Thursday pushing the S&P BSE Sensex below 60,000, while the Nifty50 closed below 17,900 levels.

Sectorally, selling pressure was seen in realty, banks, power, utilities, oil & gas, metal, finance, and consumer durable that fell 2-4 per cent, respectively.  

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Stocks that were in focus included IndusInd Bank that rose nearly 3 per cent, United Spirits closed with gains of nearly 1 per cent, and PNB fell by over 10 per cent.

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

IndusInd Bank: Sell

Albeit this counter reacted with a lot of strength in the last session to the earnings, but it failed to hold on to the gains by the end of the day.

Moreover, it seems to be facing resistance from the down sloping trend line, which is in progress from August 2018 highs. Hence, to regain strength, this counter needs to register a sustainable close above 1240 levels.

On such a close, a higher target of 1349 can be expected. In the next session, if it slips below 1169 then more weakness may emerge dragging down the scrip towards 1122.

For the time being, traders - who already own a position - should maintain a stop below 1169 and exit in the next session. Fresh buying should be considered only at a close above 1240.

United Spirits: Hold

This counter seems to have resumed its uptrend as it erased 10 sessions of losses from the highs of 925 – 811 in just 3 trading sessions.

However, considering a sharp fall seen in the broader markets, it looks inevitable for this counter to sustain above 875 levels going forward as a breach of this on a closing basis can again drag it down towards 820 kinds of levels, whereas strength in this counter shall be expected on a close above 944 levels.

For the time being, it is a hold, with a stop below 875, whereas fresh buying can be considered on a close above 925 levels.

Punjab National Bank (PNB): Avoid

On the weekly charts, this counter seems to be consolidating in a range of 45 – 32, which has become a critical hurdle on a closing basis.

Thursday’s fall of around 10 per cent on the back of huge volumes is hinting that recent highs of 48 can remain as a multi-week top and this counter may eventually head to the lower end of the consolidation zone.

However, some support can be expected in the zone of 39 – 37 levels. Our advice is to avoid this counter.        

(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.)