Buy, Sell or Hold: What should investors do with JBM Auto, ABB India and Biocon?

Indian markets closed in the red for the fourth consecutive day in a row on Friday pushing the S&P BSE Sensex lower by over 400 points while the Nifty50 closed just a shade above 17600 levels.  

Sectorally, selling was seen in telecom, consumer durables, realty, capital goods, and public sector stocks while buying was seen in FMCG names.  

Stocks that were in focus include JBM Auto closed with gains of nearly 4 per cent, ABB India pared gains and closed 1 per cent lower and Biocon rose over 3 per cent on Friday.  

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Here's what Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:  

JBM Auto: Buy  

On January 21st, the stock made a fresh 52–week high of 1647.35.  In this month so far, it has rallied over 53 per cent. On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for JBM Auto Ltd.    

However, on the short-term time frame, momentum indicators indicate that the stock is in an overbought zone and the possibility of one short-term correction is not ruled out if the stock succeeds to close below 1550.  

In the near future, 1550 could be the trend decider level for the bulls, and if the stock sustains above the same, we can expect a continuation of the uptrend up to 1675-1715.  

On the flip side, a close below 1550 could possibly trigger a quick short-term correction up to 1440-1380  

ABB India: Buy  

After a short-term price correction, the stock is consistently taking support near the 20-day SMA. On the daily and weekly charts, it has maintained higher high and higher low series formation which indicates an uptrend wave that is likely to continue in the near future.  

However, on the daily and intraday charts, the stock consistently facing resistance near the 2400 level. The texture of the chart suggests that before a fresh breakout the stock is likely to consolidate within the range of 2275 to 2400.  

For the breakout traders, 2525 would be key a breakout level to watch out. Above 2525, the breakout structure will continue till 2500-2525. On the flip side, below 2275 the uptrend would be vulnerable.  

Biocon: Buy  

The stock has rallied over 3.5 per cent on January 2021. Today, after a muted opening, it quickly cleared the resistance of 370 with strong volume activity.  

Despite weak market conditions, Biocon Ltd maintained its strong momentum throughout the day. In the short-term time frame, the stock has formed a strong price volume breakout pattern.  

The texture of the pattern suggests that breakout action will continue in the near term if the stock succeeds to trade above 370-364 level.  

For the swing traders, 364 would be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to 400.  

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)