Buy, Sell or Hold: What should investors do with KPIT Technologies, Redington & Poonawalla Fincorp?

Indian market closed with gains on Friday while for the week benchmark indices rose with gains of over 2 per cent each.

Sectorally, buying was seen in basic material, oil & gas, energy, and banks while selling pressure was seen in capital goods, telecom, and healthcare stocks.

Stocks that were in focus include KPIT Technologies closed with gains of over 12 per cent, Redington Indian closed with gains of over 11 per cent and Poonawalla Fincorp rose over 5 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:

KPIT Technologies: Buy

On January 7th, the stock made yet another all-time high of 750. In this month, the stock has rallied over 15 percent so far. A sharp price surge post breakout surprised most of the traders.

On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for KPIT Technologies Ltd.

However, on a short-term time frame, momentum indicators indicate that the stock is in an overbought zone and there are high chances of a quick short-term price correction which is not ruled out if the stock succeeds to close below 680.

For the next few trading sessions, 680-675 could be the trend decider level for the bulls. If the stock sustains above the same, then we can expect a continuation of the uptrend up to 765 -800.

On the flip side, a dismissal of 675 could possibly trigger a quick short-term correction up to 630-610.

Poonawal Fincorp: Buy

The stock has rallied over 5 percent on January 7th. On the short-term time frame stock has formed a strong price volume breakout continuation formation.

The texture of the pattern suggests that the breakout action will continue in the near term if the stock succeeds to trade above 252 level.

For the swing traders, the level of 252 could be the sacrosanct level. If the stock trades above the same, then we can expect the uptrend continuation wave up to 275-285. However, below 250, the uptrend would be vulnerable.

Redington India: Buy

 The stock has rallied over 11 percent on January 7th. Today, post strong opening the stock quickly surpassed 150 resistance mark and post range breakout it intensified the positive 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 that the breakout action will continue in the near term if the stock succeeds to trade above 155 level.

For the breakout traders, 155 would be the key level to watch out for, above the same it could move up to 175-185.

(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.)