Buy, sell or hold—What should investors do with Sumitomo Chemical, Rain Industries and BBTC?

The Indian markets have been trading higher by more than one per cent led by recovery in banking and financial stocks post RBI announcements on hike in benchmark lending rate. Benchmarks also gained strength from IT, metal and auto stocks.  

Headline indices Nifty50 and the Sensex gained nearly 1.25% each in the afternoon trade as the 50-share blue chip index traded near 16,900 and the latter surged nearly 600 points.  

Following benchmark indices, Nifty midcap and small cap gained over 1% and 0.7% respectively as India VIX cooled off to 20-mark.  

Among sectoral indices, except Nifty Realty, all sectors were sitting in the green on Thursday.  

Earlier, on Wednesday three stocks, namely Sumitomo Chemical, Rain Industries and BBTC, came in focus based on their movements on either side. On Thursday, Sumitomo Chemical was trading flat at Rs 451 per share around 1.15 pm on the BSE. Similarly, Rain Industries too traded flat with negative bias and BBTC was down nearly half per cent to Rs 995 per share around the same time after sowing sharp movement on Wednesday.  

Here is what Santosh Meena, Head of Research, Swastika Investmart Ltd, say technical indicators of these stocks say about their price movement.  

Sumitomo Chemical: 

The counter is witnessing strong bullish momentum after breaking out the key hurdle of 420 with bullish flag formation where 500 looks like an imminent target. On the downside, 430-420 has become a strong demand zone where 20-DMA is placed at the 430 level. Momentum indicators are positively poised, however, some of them are in overbought territory but they may remain overbought for some more time. 

Rain Industries 

The counter was showing signs of topping out after the breakdown of the support level of 290, however, it is trying to find support near the 160 level, but 190-200 will remain the key supply zone and only a decisive move to 200 can lead to fresh bullish momentum. On the downside, if it slips below the 160 level then 137-127 will be the next demand zone. 

BBTC 

The counter is bottoming out with bullish inverse head and shoulder formation, however, 200-DMA around 1075 is acting as an immediate and critical hurdle. If it manages to sustain above its 200-DMA then we can expect a move towards 1175/1250 levels. On the downside, 960 will act as an immediate and strong support level. Momentum indicators are also positively poised to support the current strength of the trend. 

(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.)