Buy, Sell or Hold: What should investors do with Nazara Technologies & IRCTC?

Indian market closed in the green for the second consecutive day in a row on Friday. Broader market indices outperformed benchmark indices for the week ended October 8.

The S&P BSE Sensex and Nifty50 closed with gains of over 2 percent each while the S&P BSE Midcap index rose 2.4 percent while the S&P BSE Small-cap index closed with gains of nearly 4 percent in the same period.

Sectorally, the action was seen in energy, IT, and auto stocks while selling was visible in realty, power, FMCG, and utilities.

Stocks that were in focus include IRCTC that rose nearly 4 percent, and Rakesh Jhunjhunwala backed Nazara Technologies closed with gains of over 15 percent. All stocks hit a fresh 52-week high on Tuesday.

Ace investor Rakesh Jhunjhunwala-backed gaming company Nazara Technologies’ 2,14,823 equity shares were picked up by WHV-EAM International Small Cap Equity Fund at Rs 3011.27 per share on the NSE, the bulk deals data showed on Friday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

IRCTC:

IRCTC is in a strong bullish momentum nevertheless technical chart is looking overstretched after a vertical run but it is difficult to fight with the momentum.

The momentum may take it (stock) further higher towards Rs 5000 levels that may act as a psychological hurdle.

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Momentum indicators are trading in an overbought territory that may lead to some consolidation or corrective action where 4500 will be the first support while 4000-3800 will be a strong demand zone to take fresh entry.  

Nazara Technologies:

The counter gained strong bullish momentum after recording a breakout from 2025 levels that was the high seen on the listing day.

The technical chart is looking overstretched for the time being and momentum indicators are also indicating an overbought territory that may lead to some profit booking in the counter.

The level of 3250-3300 zone could act as an immediate resistance zone while 3500 will be the next important hurdle.

On the downside, 2750-2650 will be the first demand zone while 2250 will be the next important support at any correction.

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.