Buy, Sell or Hold: What should investors do with Vardhman Textiles, Elgi Equipment & Tata Tele?

Indian markets closed in the red for the fourth consecutive day in a row on Wednesday following a muted trend seen in global markets.

Sectorally, buying was seen in auto, capital goods while some selling was visible in realty, IT, metals, utilities, and public sector stocks.

Stocks that were in focus include Vardhaman Textiles that closed with gains of over 6 per cent, Elgi Equipment closed with gains of nearly 4 per cent and Tata Tele rose 5 per cent.

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

Vardhaman Textiles: Buy

The counter is in a classical uptrend after the breakout from an Ascending Triangle formation; however, on the upside, 2350 is an immediate trendline resistance where it may take some pause.If the stock managed to close above Rs 2350 then it is likely to head towards 2500-2625 levels. On the downside, 2100-2000 will act as an immediate demand zone while 1840-1775 is the next critical demand zone. Momentum indicators are also positively poised to support the current strength.    
 

See Zee Business Live TV Streaming Below:

ELGI Equipment: Buy

Elgi equipment is witnessing a strong bullish momentum after witnessing a breakout after 8 months of consolidation. It may test the level of 340 on an immediate basis; however, most of the momentum indicators have entered overbought territory that may lead to some consolidation or correction in the market.Every dip is a good buying opportunity as the long-term view is still very bullish where 280-270 is an immediate demand zone while 250-240 will be the next demand zone.

TTML: Avoid Fresh Longs

The stock is witnessing a vertical run and looks overheated but it is difficult to say that when it will start to correct.

Fresh entry is not advisable while 125 is a stop loss for existing investors/traders. It is trading in uncharted territory and most of the indicators are in overbought territory where levels are meaningless.

(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.)