Buy, Sell or Hold: What should investors do with Polyplex, RHI Magnesita India and Rattanindia?

The Indian market traded volatile and ended in the red for the second day in a row on Wednesday amid neutral global cues. Benchmarks Nifty50 and Sensex declined 0.37% and 0.33% respectively as profit booking in IT, pharma and realty stocks dragged the market. However, recovery in the last half an hour of the trade trimmed losses.  

In the broader market Nifty midcap and small cap ended in the green with marginal gains of 0.04% and 0.28%. 

A mixed trend was seen on the sectoral front wherein banking, capital goods and metals ended higher, while realty, IT and healthcare came under selling pressure. 

"With macro data behind us, the performance of the global markets amid the lingering inflation fear would dictate the trend. Besides, monsoon updates ahead of the monetary policy meet would also be in focus," said Ajit Mishra, VP - Research, Religare Broking Ltd 

Meanwhile some stocks came in focus as market traded volatile on Wednesday. These stocks were Polyplex, RHI Magnesita India and RattanIndia Enterprises. Polyplex closed with gains of more than seven per cent , RHI Magnesita and RattanIndia Enterprises ended higher by around 10% each on Wednesday.  

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

Polyplex 

The counter is in a very strong uptrend where it took support at 100-DMA after a small correction and now it is resuming its classical up move for the next leg of the rally where 3000 looks an imminent target. On the downside, the 2300-2200 area has become a strong demand zone. Momentum indicators are gaining strength after witnessing positive crossover.  

RHIM 

The counter is in a classical uptrend where it is breaking out of bullish flag formation with heavy volume to resume its uptrend. On the upside, the previous swing high of 670 is an immediate target whereas it has the potential to move towards the 800 level. On the downside, 100-DMA of 525 will act as a strong support level. Momentum indicators are supporting the current strength of the trend.  

RattanIndia 

The counter is in strong bullish momentum where it is consolidating in a wide range of 40-65 for the last one year followed by a vertical rise. If it manages to cross the 65 level then we can expect the next leg of the rally towards 81/100 levels. On the downside, 40 is major support and that should be stop loss on a closing basis.