Buy, Sell or Hold- What should investors do with MRPL, Sudarshan Chemical and Metropolis Healthcare?

The Indian market ended marginally lower on Wednesday as it snapped a two-day winning streak to close in the red. Benchmarks Nifty50 and the Sensex dropped 0.12% and 0.20% respectively. Following benchmarks, Nifty midcap and smallcap indices too closed with 0.2 to 0.4% cuts on Wednesday.  

"With the support from pharma and FMCG stocks, the domestic market had a steady run until the weak opening of the European market. UK’s soaring retail inflation number along with Fed Chair’s reassurance on bringing down the inflation, disturbed the sentiment, risking sharper rate hikes, said Vinod Nair, Head of Research at Geojit Financial Services.  

Sectorally, FMCG, Pharma and Healthcare stocks surged, while others witnessed selling pressure.  

Meanwhile, certain stocks came in focus due to their movement on either side on Wednesday. These were MRPL (Mangalore Refinery and Petrochemicals), Sudarshan Chemical and Metropolis Healthcare. MRPL closed with over 9% gains, Sudarshan Chemical ended almost 20% higher and Metropolis Healthcare dropped more than 9% on Wednesday.  

Here is what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommend investors should do with these stocks. 

MRPL: The Counter is in a Classical uptrend and stock is traveling at its 52-Week high levels. Overall structure looks lucrative as it trades above its 100,200 SMA moving averages, also it is having demand zone near 65-67. On the upside, 100 is an immediate resistance area; above this, we can expect a run-up towards 120+ levels in the near term. On the downside, if it will break the 75 levels then 65 is the next critical zone. 

SUDARSCHEM: The Counter is in a downward trend but in the last few trading sessions counter has given an astute recovery from the 418-420 zone with Strong Volume which was multi-year support for the Counter. The Overall structure is distorted however it is having a demand zone near 420. On the upside, 540 is an immediate susceptible area; above this, we can expect a run-up towards 560+ levels in the near term while Rs 415 is an immediate demand level. 

METROPOLIS: The Primary structure of the Counter is continuously following the downtrend. In the last trading session stock has broken neckline support with strong volume. Stock is trading below all its below averages which is also a negative sign for the counter. On the downside, 1600 is the critical level; below this, we can expect a free fall to the 1400 level. On the upside, 2150is an immediate susceptible area.