Buy, Sell or Hold: What should investors do with Infosys, JK Paper and NLC India?

The Indian market extended losses for the fourth straight session on Monday as NSE and BSE resumed trading after a gap of four days. Benchmarks Nifty50 and Sensex declined 1.7% and 2% respectively. The broader Nifty50 ended below 17,200 at 17,173.65 and the 30-share Sensex settled near 57,200 after falling by nearly 1200 points on Monday. The weakness in the Indian market was due to weak q4 numbers by heavyweights Infosys and HDFC Bank, a surge in energy prices, fresh worries about covid, rising inflation, and continued geopolitical tension. 

Meanwhile, Nifty midcap and small cap indices too corrected more than 1% in Monday's closing as India Volatility Index (India VIX) settled above 19-mark.  

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The crucial Nifty Bank too more than 700 points to end near 36,700 as HDFC Bank led the carnage on the 12-share banking index. 

Sector-wise auto, metal and FMCG managed to close in the green, while all other sectoral indices declined on Monday, with banking and financial services taking the maximum hit.  

Among many stocks, the counters that were in focus included Infosys, JK Paper and NLC India.  It major Infosys closed with more than 7% loss, while JK Paper closed with nearly 6% gains after hitting 52-week high and NLC India gained more than 7% on Monday.  

Here is what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, says about price action in these stocks and recommends what should investors do when market resues trading on Tuesday.  

JK Paper 

Recommendation: Buy on dips | Target: Rs465 | Time Duration: 3-4 Weeks 

On 1st April’22, the stock witnessed a breakout from a bullish flag pattern and recorded a new high of Rs 387 thereafter. The key technical indicators are positive on major timeframe charts. This could lead the stock towards Rs 427 initially and Rs465 subsequently.In case of decline, the stock will find support around Rs 325-310 zone. 

NLC India 

Recommendation: Buy above Rs80 | Target: Rs95 | Time Duration: 2-3 Months 

The stock retraced 50% of its prior up-move (Rs 62-73) and after a consolidation, resumed its up-move. Major parameters are positively poised on all timeframe charts. On the higher side, the stock may face hurdles around Rs76-80 zone. A stable move above that zone could lead the stock towards Rs90 initially and Rs95 subsequently. In case of decline, the stock will find support around its 200-day SMA, which is placed at Rs62. 

Infosys 

Recommendation: Sell on rise | Target: Rs1,400 | Time Duration: 3-4 months 

On 18th April’22, the stock witnessed a gap down opening amidst negative news flow and violated its upward sloping 200-day SMA. The stock tested its 23.6% Fibonacci Retracement level of prior mega up-move (Rs509-1,954), which was placed at Rs1,612. Major technical parameters are negatively poised on all timeframe charts. 

In case the stock violates the above-mentioned Fibonacci retracement level, further decline cannot be ruled out.This could drag the stock towards Rs1,500 initially and Rs1,400 subsequently. On the higher side, its 200-day SMA will cap the up-move, which was placed at Rs1,735. 

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