Buy, Sell or Hold: What should investors do with Mazagaon Dock, Rites and Sanofi India?

The Indian market ended negative for the second consecutive day on Tuesday tracking its global peers. Benchmarks Nifty50 and the Sensex dropped 0.8% and 0.6% as hyperinflation and risk of a policy rate hike. The broader Nifty50 slipped 17,600 to close at 17,530, while the Sensex declined more than 300 points as the 30-share index closed below 58,600.  

The 12-share Nifty Bank outperformed benchmarks as the banking index ended higher by nearly 0.4% on Tuesday. In the broader market, Nifty midcap and small cap faced tremendous sell-off as both the indices settled with more than 1.5% loss after outperforming benchmarks indices in the last few sessions.  

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Stocks those were in focus on Tuesday include Mazagaon Dock, Rites and Sanofi India. Mazagaon Dock traded on 52-week high value and closed with nearly 9% gains on Tuesday, Rites shares too ended with over 4% gains, while Sanofi India dropped around 1% even as the company announced Rs 181 per equity share special dividend.  

Here is what Jatin Gohil - Technical and Derivative Research Analyst at Reliance Securities, recommends what investors should do with these stocks when market resumes trading today 
 

Mazagaon Dock 

Recommendation: Profit booking 

On 4th April’22, the stock witnessed breakout from a downward sloping trendline and extended gain subsequently. Continuing its prior daily up-trend, yesterday the stock recorded new high of Rs333. Due to such a sharp rise in the stock, its key technical indicators tested overbought zone. Historically, the stock reversed after an identical up-move on the back of profit booking. On the higher side, the stock will face hurdles around Rs350-355 zone. 

RITES 

Recommendation: Buy on dips | Target: Rs315 | Time Duration: 1-2 months 

On 12th April’22, the stock surpassed its short-term hurdle zone (Rs265-270) convincingly and rose to 4 ½ month high with relatively higher volume. The key technical indicators are positively poised on the short-term timeframe chart. This could lead the stock towards Rs300 initially and Rs315 subsequently. In case of decline, the stock will find support around Rs250-245 zone. 

Sanofi India 

Recommendation: Sell | Target: Rs6,200 | Time Duration: 3-4 Months 

After a higher-level reversal, the stock witnessed a pullback and resumed its down-move subsequently. Major technical indicators are negatively in favor of bears on medium-term timeframe chart. This could drag the stock towards Rs7,000-6,800-6,200. On the higher side, Rs7,900-8,000 zone will cap the up-move. However a stable move above that zone could invalidate probable decline. 

(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.)