Buy, Sell or Hold: What should investors do with VRL Logistics, Sharda Cropchem and Hindustan Copper?

Indian market closed in the red for the second consecutive day in a row on Friday. The S&P BSE Sensex fell more than 100 points while the Nifty50 managed to hold on to 17500 levels.

Sectorally, buying was seen in metals, basic material, utilities, power while selling was visible in realty, auto, public sector, and consumer discretionary.

Stocks that were in focus include VRL Logistics which closed with gains of nearly 7 per cent, Sharda Cropchem rose over 6 per cent and Hindustan Copper also closed with gains of over 6 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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VRL Logistics: Buy

In this week gone by, the stock rallied over 21 per cent. On February 4th, post strong opening, the stock quickly surpassed 515 resistance mark and recorded a range breakout.

Technically, in the short-term time frame, the stock has formed a strong price volume breakout formation. In addition, on the weekly charts, it also formed a long bullish candle which indicates a further uptrend from current levels.  

The texture of the pattern suggests that the breakout action will continue in the near term if the stock succeeds to trade above 515 level.

For the breakout traders, 515-510 would be the key level to watch out. If the stock surpasses this level, then it would open room for the stock to move up towards 550-570.

Sharda Corpchem: Book Profits

The stock has rallied over 85 per cent so far in this quarter. Currently, the stock is holding a breakout continuation formation, but the uptrend would be vulnerable if it closes below 620.  

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

As long as it is trading above 620, the uptrend wave is likely to continue till 680-690. However, dismissal of 620 could trigger a short-term correction up to 600-580.

Hindustan Copper: Buy

Last Friday, despite tepid market conditions, the stock rallied over 5 per cent and after a long time, it managed to succeed above 200-Day SMA.

For the trend following traders, now the 20-Day SMA or 130 would be the key level to watch out for. Above which the uptrend formation will continue till 145. Further upside may also continue which could lift the stock up to 155.

(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.)