Buy, Sell or Hold: What should investors do with TTML, Tech Mahindra & L&T Finance Holding?

Indian market snapped a 3-day winning streak to close in the red on Friday. The S&P BSE Sensex fell nearly 200 points while the Nifty50 closed just a shade above 17000.

Sectorally, buying was seen in IT stocks on Friday while selling pressure was witnessed in power, public sector, realty, and oil & gas stocks.

Stocks that were in focus include Infosys, which pared gains but closed up nearly 2 per cent. Meanwhile, Birlasoft closed with gains of over 5 per cent while Gati Ltd closed with gains of about 15 per cent on Thursday.

Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
 

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TTML: Reduce weak long positions

In this quarter so far, the stock has rallied over 350 percent, from Rs 35.30 to Rs 189.10 after a sharp surge. Eventually, it faced resistance near 190.

After a four-day price correction, the stock took support near 150 and reversed sharply. It recorded back-to-back lower circuits which indicates that traders preferred to book profits near 190.

We are of the view that the stock is extremely volatile and there is a strong possibility of further downside from current levels.

The level of 180-190 should act as a strong resistance area in the near term on the upside. In case of any pull back rally from current levels, we advise investors to reduce weak trading long positions.

Tech Mahindra: Buy

Tech Mahindra Ltd has formed a higher bottom formation post a short-term correction. On Friday, the stock maintained strong momentum and hit a fresh all-time high of 1735.20 despite tepid market conditions .  

The structure of the chart suggests that there is a strong possibility of a fresh breakout continuation formation that is likely to carry-on, in the near future.  

Unless it is trading below 1670, positional traders must retain an optimistic stance and look for a target 1800. Fresh buying can be considered now or on dips, if any, between 1725 and 1700 levels with a stop loss below 1670.

L&T Finance Holding

From the last couple of months, the stock has been forming a lower top formation which is broadly negative for the L&T Finance Holding Ltd.

Recently, the stock witnessed a sharp pullback rally from 72 support level but one more time it failed to sustain above 50-Day SMA.

On the daily chart, the stock has formed a long bearish candle. The sharp price volume activity indicates further weakness from current levels.

We are of the view that as long it is trading below 50-Day SMA the weakness is likely to continue below the same and the correction wave will continue up to 74 to 72 levels.

On the flip side, a fresh uptrend wave is possible only after the dismissal of 83 or 50-Day SMA.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)