Buy, Sell or Hold: What should investors do with Rain Industries, BSE and Coal India?
Indian market closed in the green on Wednesday for the second consecutive day in a row.
Indian market closed in the green on Wednesday for the second consecutive day in a row. The S&P BSE Sensex rallied more than 600 points while the Nifty50 closed above 17450 levels.
Sectorally, buying was seen in auto, consumer durables, metal, and banking stocks while some selling was visible in the oil & gas space.
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Stocks that were in focus include Rain Industries which closed with gains of over 5 per cent, BSE rose nearly 8 per cent, and Coal India closed with gains of over 5.5 per cent on Wednesday.
Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:
Rain Industries: Buy
The counter is coming out of a long consolidation with strong volumes. The overall structure is very bullish as it trades above all the important moving averages.
The stock is breaking out of Triangle formation. It created a strong base at 200-DMA around 216 levels. On the upside, 255 is an immediate resistance where it may see some pause but above this, it is likely to head towards 280 levels.
On the downside, Rs. 210 is a major support at any correction while 190-192 is the next critical demand zone. MACD and RSI are supporting the strength of the current movement.
BSE: Buy
The counter has a strong bullish setup where it created a base at 100-DMA and then witnessed a breakout with strong volume. We are expecting a level of 2500 in the near term.
On the downside, Rs 2000 will act as a strong support level. Momentum indicators are positively poised to support the current strength.
Coal India: Hold
The stock is bottoming out with bullish inverse head and shoulder formation with the surge in volume. The stock is facing resistance at Rs. 170 level; above this we are expecting a move towards 182 level.
On the downside, Rs. 158 is a major support level at any correction while 155 is the next critical support level. Momentum indicators are positively poised to support the current strength.
(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.)
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