Buy, sell or hold: What should investors do with Thyrocare, Anupam Rasayan and Oil India?
The Indian market declined marginally to slip in the red for the second consecutive session in a row on Monday.
The Indian market declined marginally to slip in the red for the second consecutive session in a row on Monday. The broader Nifty50 saw a minor cut of 0.09% as the 50-share index settled at 16,569.55. Similarly, Sensex dropped 94 points to close at 55,675.
"The domestic market moved in tandem with the global peers to open weak and gradually recovered its losses following a positive start in Europe," said Vinod Nair, Head of Research at Geojit Financial Services.
Oil prices rose after Saudi Arabia raised their selling price adding to the current global inflationary pressure, he said. "Better than expected US job data triggered worries on Wall Street as it gives the Fed more room to hike rates. This volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks including RBI," the expert added.
Meanwhile, In the broader market, Nifty midcap corrected by 0.11%, while small cap index declined nearly one per cent as profit taking hit the broader market.
On sectoral front, Nifty Media, Consumer Durables, Realty and IT declined, while oil & gas, metal, Auto and Private Bank gained
Amid volatility, certain stocks came in focus on Monday. These stocks were Thyrocare, Anupam Rasayan and Oil India. Thyrocare closed with gains of nearly six per cent, Anupam Rasayan closed higher by more than one and half per cent and Oil India gained 11% on Monday.
Here is what Jatin Gohil- Technical and Derivatives Research analyst at Reliance Securities recommends investors should do with these stocks.
Thyrocare
Recommendation: Buy on dips | Target: Rs800 | Stop Loss: Rs624 | Time Duration: 1-2 weeks
The stock bounced after forming a bullish reversal pattern-Double Bottom at around Rs630 on the daily chart.
Above average volume indicates that major market participants were in favor of the bulls.
Its daily RSI witnessed a bullish divergence and is positively poised. This could take the stock towards Rs760 initially and Rs800 subsequently. In case the stock violates its double bottom point, probable rebound will be negated.
Anupam Rasayan
Recommendation: Sell on rise | Target: Rs475 | Stop Loss: Rs745 | Time Duration: 2-3 Weeks
The stock resumed its southward journey post a pullback and slipped to one-year low of Rs618. Spike in volume signals that major market participants were in favor of the bears. Major moving averages are sloping downwards on the daily timeframe chart. This could drag the stock towards Rs510 initially and Rs475 subsequently. On the higher side, the stock will face hurdle around Rs 745.
Oil India
Recommendation: Buy on dips | Target: Rs335 | Stop Loss: Rs259 | Time Duration: 3-4 Months
On 6 th Jun’22, the stock surpassed its medium-term supply zone (Rs259-268) convincingly and rose to multi-year high of Rs285. Its moving averages are sloping upwards on major timeframe charts. The key technical indicators are in favor of the bulls. The stock has potential to move towards its life-time-high of Rs335. As per the change in polarity principle, now prior supply zone will turn as a demand zone for the stock.
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