Buy, Sell or Hold: What should investors do with Shoppers Stop & RVNL?

Indian market closed in the red on Friday while for the week benchmark indices closed with losses of about 1 per cent. The broader market underperformed benchmark indices for the week ended October 22.

In terms of sectors, the banks and finance stocks outperformed, while selling was seen in the consumption, metal, and realty stocks.

See Zee Business Live TV Streaming Below:

Stocks that were in focus include Shoppers Stop which fell nearly 5 per cent, and Rail Vikas Nigam Ltd was locked in the upper circuit of 20 per cent.

Here's what Vishal Wagh, Research Head, Bonanza Portfolio, recommends investors should do with these stocks when the market resumes trading today:

Shopper Stop: Rs 300 crucial support

The stock on the weekly timeframe is forming a higher high higher low price pattern since the March 2020 lows and has given a channel breakout with rising volumes.

Currently, it is at Rs 336.70 and is trading above all its moving averages. Previously, the stock faced multiple resistance at 475 Rs and it is likely that the stock will continue the momentum on the upside.

The immediate resistance is placed at 385-400 Rs where sellers have been active. Overall, the stock is showing a bullish tone. If the stock is not able to sustain 300 Rs then it can again retrace back and move within the channel.

RVNL: Buy on dips

The stock is trading at its all-time high levels at 36.30 and has given a double bottom breakout. The stock is trading above all its major moving averages.

Previously, it has taken support from its 200-Days EMA which will act as a crucial level in near future. On the downside, the levels are near 30-32 where buying interest is visible and is the 50 EMA support.

On the upside, the levels are 40-42 which is the next Fibonacci extension level.

On the indicator front, the RSI is placed at 75.12 which means that the stock is nearing overbought zones and ADX is at 41.62 giving an uptick which justifies that the trend is showing strength.

MACD has already given a positive crossover and is sustaining above its zero line. Overall, this is a buy on dip counter.

(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.)