Buy, Sell or Hold: What should investors do with Manappuram Finance, Equitas Small Finance Bank and Linde India?

Indian market closed in the red for the fourth consecutive day in a row on Monday following muted global cues. The S&P BSE Sensex fell by nearly 150 points while the Nifty50 managed to hold on to 17200 levels.

Sectoral buying was seen in banks while selling pressure was seen in oil & gas, metals, utilities, power, and healthcare stocks. The S&P BSE Small-cap index fell 2.2 per cent while the S&P BSE Mid-cap index was down 0.8 per cent.

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Stocks that were in focus include Manappuram Finance that closed with losses of over 2 per cent, Equitas Small Finance bank Ltd fell nearly 4 per cent and Linde India rose nearly 10 per cent on Monday.  

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Manappuram Finance: Buy on dips | Target: Rs 180-195 | Duration: 4-6 months

On 10th November 2021, the stock recorded a lifetime-high of Rs 224.50, but after a profit booking, it has witnessed a sharp fall.

Due to continuous decline, the stock reported a fall of 48% from its peak level (i.e. from Rs224.50-117.25). Historically, the stock bounced after a 46-62% decline from its peak level.

Major technical indicators have tested their oversold zone on a short-term timeframe chart. We believe history will repeat itself, which could help the stock to recover prior damages quite swiftly.

On the lower side, the stock will find support around psychological level Rs 100. However, its long-term supply zone, which is placed between Rs 180 and Rs 195 will cap the up move.

Equitas Small Finance Bank: Buy | Target: Rs 67-71 | Duration: 2-3 weeks

The stock formed a double bottom around Rs 52 and bounced subsequently. On 21st February 2021, the stock breached its prior daily falling trend and rose to a 1-month high.

Its daily RSI has given a buy signal post bullish divergence. This could lead the stock towards Rs 67 initially and Rs 71 subsequently.

On the lower side, the stock will find support around Rs 49 (on a closing basis).

Linde India: Buy | Target: Rs 3,615 | Time Duration: 2-3 Months

On 21st February 21, the stock given breakout from a prior wide range of Rs 2,273-2,945 and recorded a new life-time-high of Rs 3,005.

Major moving averages are sloping upwards on short-term as well as medium-term timeframe charts.

The key technical indicators are in favour of bulls. The stock has the potential to move towards Rs 3,450 initially and Rs 3,615 subsequently.

On the lower side, the stock will find support between Rs 2,550 and Rs 2,475.

(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.)