Buy, Sell or Hold: What should investors do with Inox, Indian Hotels and GMDC?
Extending losses for the third straight session last week, the Indian market ended in the red on Friday as global uncertainties and spike in crude weighed on the market
Extending losses for the third straight session last week, the Indian market ended in the red on Friday as global uncertainties and spike in crude weighed on the market. The market closed 4 sessions lower amid volatility last week.
The Nifty50 ended below 17,200, while the S&P BSE Sensex settled with cuts of over 200 points. Following benchmarks, Nifty midcap and small cap too ended lower by 0.12% and 0.49% respectively.
See Zee Business Live TV Streaming Below:
Sectorally, Realty, Oil & Gas and PSU Bank stocks saw buying interest, while stocks from consumer durables, IT, FMCG and Auto witnessed selling pressure on Friday.
Stocks that were in focus on March 25 were Inox Leisure, which gained more than 6% after the company announced merger with PVR Limited. Other stocks that hogged the limelight were Indian Hotels that touched 52-week high value of Rs 235.70 and ended with nearly 4% gain and GMDC, which ended with nearly 7% gain to Rs 189.15.
Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
Inox Leisure:
The stock rallied over 6 percent on March 25. On Friday, the stock opened with a strong note and registered a fresh 52-week high of Rs 496.80 with strong volume activity. Despite weak market conditions, it maintained its strong momentum throughout the day. On the short-term time frame, the stock has formed a strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if stock succeeds in trading above Rs 455 level. For the swing traders, Rs 455 would be the sacrosanct level, trading above the same we could expect uptrend continuation wave up to Rs 500-525.
Indian Hotels
The stock made a fresh all-time high of Rs 235.80 on Friday. In this month so far, it rallied over 16 percent. The important point is stock not only surpassed its short-term resistance of Rs 220, but also succeeded in closing above the same. On the daily and weekly charts, the stock is holding higher high and higher low series formation, which is broadly positive for the Indian Hotel Ltd. However, on short-term time frame, momentum indicators indicate that stock is in the overbought zone and high chances of quick short-term price correction is not ruled out if it trades below Rs 215. For the next few trading session Rs 215 would be the trend decider level for the bulls, sustain above the same, we could expect continuation of uptrend up to Rs 250-265. On the flip side, dismissal of Rs 215 could possibly trigger quick short-term correction till Rs 210-200.
GMDC
In this quarter so far, the stock has rallied over 155%. Post 85 price volume breakout, the stock was soaring rapidly. The sharp surge in the price surprised most of the traders as well as investors. The medium-term texture of the chart is positive and likely to continue in the near term. However, in the short-term time frame stock is in to the overbought zone and profit booking is not ruled out if stock trades below 170 level. On the flip side, above 170 uptrend formation likely continue up to 200 -215. Due to temporary overbought situation, traders may prefer to take a cautious stance near 200 resistance level.
(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.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.