Buy, Sell or Hold: What should investors do with Poonawalla Fin Corp, Suzlon and Escorts?

Extending losses for the third consecutive session, the Indian market closed with nearly 1% loss amid weak global cues and Fed rhetoric. S&P BSE Sensex declined by 0.97% or shed over 550 points to close above 59,000, while the Nifty 50 dropped 0.94% to close below 17,700. 

The 12-share Nifty Bank slumped 75 points to end above 37,500. 

In the broader market, Nifty midcap corrected by nearly 1% and the small cap indices dropped about 0.3% as India Volatility index close near 19-mark. 

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Among sectors, except pharma and healthcare, all sectoral indices turned negative with metal, auto, consumer durables and oil & gas declining the most in a negative market.  

Stocks that were in focus on Thursday included Poonawalla, Suzlon and Escorts. After trading at new 52-week high value on Thursday, shares of Poonawalla Fincorp closed with nearly 10% gains. Similarly, Suzlon that hit 10% upper circuit settled with 9% gains, while Escorts Ltd dropped 9% on Thursday.  

Here's what Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, recommends investors should do with these stocks when the market resumes trading today   

1.       Poonawalla: 

The stock is in up trend on multiple timeframes. Recently it witnessed a brief consolidation near 275-286 zone & has given a strong breakout on the upside. On the way up, it crossed the Jan high of 302.90. The rise is being accompanied by volumes as well. Additionally, the daily momentum indicator is in sync with the price action. Thus, the stock is expected to head higher towards 335 & subsequently to 356 

2.       Suzlon: 

The stock witnessed a base formation near the daily lower Bollinger Band in the last week. This week it has broken out on the upside & is getting strong traction towards north. The daily momentum indicator has started a new cycle on the upside. Thus, the stock is poised to test the Jan high of 13.10 in the short term; beyond which larger upside potential will open up from medium term perspective 

3.       Escorts: 

The stock had a strong up move in the last few sessions however couldn’t sustain above 1900. It stumbled near the daily & the weekly upper Bollinger Bands & has fallen below the key daily moving averages. The overall structure shows that the stock can witness sideways action in the short term. 1650-1800 is expected to be the range for the counter over the next couple of weeks.

(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.)