Buy, Sell or Hold: What should investors do with ONGC, AstraZeneca Pharma and Whirlpool?

Extending gains for the second straight session, the Indian market ended higher by more than one per cent on Friday, May 27. The strong finishing on the last two sessions helped benchmark indices Nifty50 and Sensex gain 0.5% and 1% respectively for the week ended May 27, 2022. On Friday, the headline indices closed strongly, the 50-share blue-chip index closed at 16,352 and the 30-share index settled higher by 1.17% to 54,884.  

In the broader market, Nifty midap and smallcap gained 1.3% each as India VIX clamed down to around 21-mark. Sectorally, Nifty IT rose the most as the idnex gained more than 2.5% in Friday's closing 

For the week ended May 27, The recovery was led by banking and auto stocks as Nifty Private Bank and Nifty Auto closed the highly charged week with 4% and 3% gains respectively. Metal remained the top drag this week as Nifty Metal and BSE Metal closed lower by eight per cent in the last five sessions.  

"The Nifty had a volatile week, where it dipped below 16000-mark, however, managed to recover & closed in the green on the weekly chart," said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.  

Meanwhile, certain stocks came in focus on Friday. These stocks were ONGC, AstraZeneca Pharma and Whirlpool. ONGC, which posted 31% jump in q4 earnings, declined five per cent on Friday, AstraZeneca Pharma gained more than 12% and Whirlpool ended higher by eight per cent  

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, says one should do with these stocks once the market resumes rading on Monday  

ONGC: 

In the last week, the stock corrected over 11 percent. From last couple of weeks, it is consistently facing selling pressure at higher level. In addition, on daily and weekly charts, it has formed lower top formation and post breakdown it is comfortably trading below 20 and 200-day SMA which is largely negative. As long as it is trading below 155 or 200-day SMA, the correction wave is likely to continue. Below the same, it could touch the level of 138. Further down side may also continue which may drag the stock up to 133. On the flip side, a fresh uptrend is possible only after 155 or above 200-day SMA level, above which it could move up to 160-165.  

AstraZeneca Pharma 

After a medium-term correction, the stock has formed double bottom formation near 2500. On Friday, the stock took the support near 50 and 20-day SMA and bounced back sharply, rallied nearly 12 percent. On daily and weekly charts, it has formed a long bullish candle which is broadly positive for AstraZeneca Pharma Ltd. Unless it trades below 2850, positional traders should have an optimistic stance and look for a target 3100-3150. A fresh buying can be considered now and on dips, if any between 2950 and 2900 levels with a stop loss below 2850.   

Whirlpool 

On the daily and weekly charts, the stock is consistently facing selling pressure at higher levels. Post quick short-term correction, the stock bounceed back sharply and on last Friday, it rallied nearly 8 percent. On daily charts, the stock has formed a long bullish candle which is broadly positive. But at the same time, the stock is consistently taking resistance near 50-day SMA. The medium-term texture of the stock is non directional, perhaps, traders are waiting for the either side breakout. For the bulls, 1650 would be the important breakout level to watch. And if the stock manages to close above the same, we can expect a quick uptrend rally towards 1700-1725. On the flip side, trading below 1550 or 20-day SMA may increase further weakness up to 1500-1435.