Buy, Sell or Hold: What should investors do with SBI, GNFC and Bank of Baroda?

Indian market closed in the red on Monday for the third consecutive day in a row. The S&P BSE Sensex fell more than 1000 points while the Nifty50 managed to hold on to 17200 levels.

Sectoral selling pressure was seen in finance, capital goods, banks, FMCG, telecom, and consumer durable stocks.

See Zee Business Live TV Streaming Below:

Stocks that were in focus include GNFC closed with gains of nearly 13 per cent, Bank of Baroda closed with gains of nearly 6 per cent and SBI pared gains after hitting 52-week high.

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

GNFC: Recommendation: Partial profit booking

On 7 February 2022, the stock recorded a new 52-week high of Rs535 post a gap-up opening. Later, the stock erased partial intraday gain amidst profit booking.

The stock is near to its long-term supply zone Rs 545-550. Historically, the stock reversed after testing that zone and witnessed a substantial decline.

A stable move above Rs 550 will invalidate the prior falling trend.

Bank of Baroda: Recommendation: Profit booking

The stock rose to a multi-month high of Rs 117 on the back of positive news flow. Since 27 December 2021, the stock witnessed over 50% rise (i.e. from Rs77 to Rs117).

Major technical indicators stuck around their overbought zone and are on the verge of a turnaround. We believe the stock may witness profit booking before a fresh up-move starts.

SBI: Recommendation: Profit booking

Since 28 January 2022, the stock oscillated in the narrow range around its prior swing high of Rs 540.

The key technical indicators are given sell signal post a bearish divergence. A convincing move below Rs520 will be negative for the stock.

In such a case, the stock could move towards Rs 500-490 zone initially and Rs 460-450 zone subsequently.

(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.)