Buy, sell or hold? What should investors do with Tata Power, NTPC & Coal India?

The Nifty50 fell for the second day in a row on Wednesday tracking muted global cues. The S&P BSE Sensex fell more than 250 points to close the day at 59413.

On the sectoral front – buying was seen in utilities, power, public sector, metal, and realty space while profit-taking was visible in finance, FMCG, banks, capital; goods, and consumer discretionary.

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Stocks that were in focus include Tata Power that rose over 8 per cent, NTPC was up more than 6 per cent, and Coal India closed with gains of over 6 percent. All stocks hit a fresh 52-week high on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

Tata Power:

The counter has come out of 14 years of a bear cycle after breaking out the 100 mark in March after then continuing its strong bullish momentum; however, 160 is an upsloping trendline resistance where it can see some profit booking.

The level of Rs 138 will be the first strong support for the stock, while 125-120 will be the critical support zone at any meaningful correction.

Any correction will be a great buying opportunity for investors to buy because the actual target of the current bull run will be around 225.

In the near term, if it manages to take out the 160 mark, then we can see a move towards 180-196 levels.

NTPC:

It also witnessed a breakout of long-term down-sloping trendline resistance on the monthly chart that may lead to further bullish momentum; however, momentum indicators are trading in overbought territory.

The level of Rs 145 will act as an immediate hurdle where we can see some profit booking while a close above the said level could take it towards 155-160 zone that is critical resistance area.

On the downside, 125-122 area will act as a strong demand zone and any correction in this area will provide a buying opportunity.  

Coal India:

The counter has witnessed a strong bullish momentum after breaking out from 160 resistance level. The stock is trading near to its critical hurdle of 200 which coincides with long-term down sloping trendline resistance and 200-week SMA.

There is a risk of profit booking from here but if it manages to cross 200 mark then there will be a strong trend reversal and we can see much higher level.

On the downside, 176-173 will be the first demand zone while 169-164 will be the critical demand zone.

(Disclaimer: The views/suggestions/advices 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.)