Buy, Sell or Hold: What should investors do with Sterlite Technologies and Borosil Ltd?

Snapping two days rally, the equity markets tumbled more than 1% on Friday amid weak global cues and selling pressure witnessed in index heavyweights. The BSE benchmark Sensex tanked 714.53 points or 1.23 per cent to settle at 57,197.15. The NSE Nifty also declined 220.65 points or 1.27 per cent to 17,171.95. Besides, the broader Nifty50 and the S&P BSE Sensex closed with 1.7% and 2% cuts for the week ended April 25.  

In the broader market, Nifty midcap and small cap ended lower by 0.9% and 0.3% respectively on Friday.   

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Among sectors, all sectors on the NSE turned red on Friday with maximum pressure seen on banking, financial, metal, pharma and healthcare stocks.   

As per Vinod Nair, Head of Research at Geojit Financial Services, global markets have moved cautiously in context to inflation data release, uncertainties of war development, volatile crude prices, hawkish FED policy and mixed quarter results.  

"Similarly, domestic market has been volatile with hawkish RBI policy and negative start to Q4 result season by IT and mixed results by the banking sector. Weak IT results has prompted the market to be worried about the headwinds like attrition, wage inflation, lower utilization, and possible cut in IT spending by industries due to geopolitical and macro issue," said Nair. 

Meanwhile, several stocks were in focus despite volatility in the market on Friday. Stocks that were in focus on Friday were Sterlite Technologies which closed with nearly 14% gain and Borosil Ltd that settled with 6% gains on the BSE.  

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd , recommend investors should do with these stocks when market resumes trading today, Monday. 

BOROLTD:  

n this month so far, the stock rallied over 12 percent. On the last Friday, despite weak market conditions, the stock rallied over 6 percent. On daily and weekly charts, it has formed promising reversal formation which supports further uptrend from the current levels. in addition, the stock consistently taking support near 20 and 50-day SMA which is largely positive for the bulls. In the short run, if it succeeds in trading above 360 or 50-day SMA then it could move up to 400-420. On the flip side, below 360 uptrends would be vulnerable. 

STLTECH:  

After a short-term correction, the stock took the support near 50-day SMA and reversed quickly. On last Friday, it opened with a gap up and successfully cleared the 20-day SMA resistance.  post breakout, it intensified the positive momentum throughout the day. A promising price volume breakout formation indicating further upside from the current levels. For the breakout traders now, 220 would be the key level to watch out. Above which it could move up to 250-260. However, traders may prefer to exit, if the stock succeeds to close below 220 or 20-day SMA.