Buy, Sell or Hold: What should investors do with Raymond, Lemon Tree and ONGC?

The Indian market extended gains for the third straight session on hopes of de-escalation of tensions between Russia and Ukraine, Foreign Institutional Investors (FIIs) turning buyers and softening of crude amid spike in Covid cases in China.  

Benchmarks Nifty50 and the S&P BSE Sensex ended with 1% and 1.28% respectively as former closed near 17,500 and the latter around 58,700. The 30-share BSE Sensex surged by 740.34 points or 1.28 per cent to settle at over six-week high of 58,683.99, a day ahead of the derivatives expiry on Thursday. As many as 21 stocks advanced and 9 declined on the 30-share Sensex, while 32 closed in the green and 18 declined on the Nifty.  

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Sensex surged 2.29 points or 1321 points, while 50-share Nifty ended 2 per cent or 345 points higher in the past three sessions as bulls took command of the D-street.  
Sectorally, banking, financial services, realty, auto and IT stocks gained in a positive market, while metal and oil & gas witnessed selling pressure.  

Stocks that were in focus on Wednesday were Raymond, which traded on 52-week high value of Rs 855 a share, Lemon Tree that dropped nearly 6% in closing after hitting fresh 52-week high and ONGC which closed lower by 5% in the closing trade on March 30.  

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

RAYMOND: The Stock has given a bullish inverse head and shoulder formation breakout with the surge in volume. Overall structure is looking lucrative as it trades above its all-important moving averages. Stock is facing resistance at Rs. 850 level, above this we are expecting a long run-up towards 1000 levels. On the downside, Rs. 640 is major support at any correction, while Rs 585 is the next critical support level. Momentum indicators are positively poised to support the current strength.

LEMONTREE: The counter is moving in the up sloping channel for a longer time frame. On the daily chart, it took support from their previous breakout levels around Rs 63. If it manages to sustain above Rs 60, we can expect bullish momentum to pick up towards Rs 80. Moving average convergence divergence (MACD) is trading above the centerline, whereas the relative strength index (RSI) is witnessing positive crossover after taking support at the 50-mark.

ONGC: The Counter is forming head & shoulder pattern formation on the daily chart but the overall structure looks strong as it trades above its 100,200 SMA moving averages. It is having a demand zone near the 155 level. On the upside, 170 is an immediate resistance area; above this, we can expect a run-up towards 180+ levels in the near term. On the downside, if it will break the 155 level then 145 is the next critical support level.

(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.)