Buy, Sell or Hold: What should investors do with RBL Bank, KPIT Technologies and La Opala?
Sectorally, buying was seen in healthcare, consumer durables, banks, and realty stocks, while selling pressure was seen in metals, telecom, and energy stocks.
Bulls managed to push the index back in the green towards the close of the trade on Monday. The S&P BSE Sensex rose nearly 300 points while the Nifty50 closed above 17080.
Sectorally, buying was seen in healthcare, consumer durables, banks, and realty stocks while selling pressure was seen in metals, telecom, and energy stocks.
Stocks that were in focus include RBL Bank, KPIT Technologies and La Opala Ltd. While RBL closed with losses of over 18 per cent, KPIT and La Opala closed with gains of over 3 per cent and 3.2 per cent respectively.
Here's what Jatin Gohil of Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
RBL Bank: Recommendation: SELL | Target: Rs102
On 27 December, the stock extended its loss post a breakaway gap and slipped to 1.5 years low of Rs130.20.
The stock has reported a fall of about 22 per cent so far in December and has been an underperformer when compared to its sectoral index-Nifty Private Bank.
Major moving averages are sloping down, and the key technical indicators are negatively poised on the short-term as well as medium-term timeframe charts.
As per the current set-up, we believe that the undergoing negative momentum will continue that could drag the stock towards its lifetime-low of Rs 101.55 in the medium-term.
In case of a pullback, the stock will face a hurdle around Rs 155-160 zone.
KPIT Technologies: Recommendation: Buy| Target: Rs 680
Continuing its prior daily up-trend, the stock witnessed a breakout from an upward consolidation and recorded a new high of Rs 560.
We believe that the stock will keep exploring uncharted territory as the key technical indicators are in favour of the bulls on the short-term as well as medium-term timeframe charts.
This could take the stock towards Rs 595 initially and then towards Rs 680. On the lower side, the stock will find support at around Rs 495.
La Opala RG Ltd: Recommendation: Partial profit-booking
Since the last 1.5 years, glass and glass products manufacturers were in focus with positive momentum.
Major companies have given 3 times return from their respective lows, on an average and are trading around their lifetime-highs.
On 27 December, the stock reversed after recording a new high of Rs456.50 and trimmed intraday gain.
Divergence on the short-term technical indicators suggests that the stock may witness a decline due to profit booking.
A violation of its 20-day EMA (399) could trigger short-term volatility.
This could drag the stock towards its 50-day EMA initially and its 100-day SMA subsequently, which are now placed around Rs 365 and Rs 322, respectively.
On the higher side, the stock will face a hurdle in the range of Rs440-465.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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