Route Mobile, Mahindra & Mahindra Finance and Shriram Transport shares: What should investors do—Buy, sell or hold?

The Indian market extended gains to the fourth consecutive session amid improved global sentiment, FIIs turning net buyers in July and robust Q1 earnings. The benchmarks were trading higher by more than half per cent in the afternoon trade as Nifty50 traded above 17,250 and Sensex jumped over 300 points to trade above 57,900.  

Outperforming barometer indices, Nifty Midcap and Smallcap gained more than one per cent on Monday.  

Likewise, Nifty Auto led sectoral indices with more than two and half per cent gain ahead of July auto sales data 2022. Besides, PSU Bank, Oil & Gas and Media stocks too attracted huge buying interest, while Pharma and Healthcare declined the most.  

Speaking on the current market trend, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the big positive for the Indian market is the FPIs turning buyers in July after 9 months of relentless selling.  

"The sharp decline in the dollar index from above 109 to below 106 now indicates that the flight to the safety of the dollar is over for now," he said.  

At 17150 Nifty valuations are again moving to the higher side, therefore at higher levels, investors have to exercise caution, suggested the expert 

"After the expected run up in financials, now, capital goods, autos particularly PV and CV segments and select pharmaceuticals look interesting. High quality financials will continue to be resilient," the expert added.  

Meanwhile, certain stocks came in focus on Friday. These stocks were Route Mobile, Mahindra & Mahindra Finance and Shriram Transport.  

Here is what Amol Athawale, Deputy Vice President, Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks. 

Route Mobile:   

After a short-term correction, the stock took the support near 1200 and bounce back sharply. Post reversal last Friday, it rallied over 13 percent. It also formed a long bullish candle on daily charts, which is largely positive. Technically, the promising reversal in the formation of the stock indicates further upside from the current levels. For the trend following traders now, 1340-1320 would act as a trend decider level. Above which, it could move up to 1500-1535. On the flip side, below 1320, traders may prefer to exit out from trading long positions.  

M&M Finance: 

In the last week, the stock witnessed a sharp correction. It corrected over 11 percent. After a modest rally, the stock registered profit booking at higher levels. On daily and weekly charts, it has formed long bearish candle which supports further correction from the current levels. For the traders, now 50-day SMA Simple Moving Average) 185 would act as a key support level. If the stock succeeds in trading above the same, then we could expect a pullback rally till 195-200. On the other side, below 185, a fresh round of selling cannot be ruled out. Below which, it could retest the level of 180-175. 

Shriram Transport Finance Company  

On last Friday, the stock corrected over 5 percent. After a promising uptrend rally, the stock corrected sharply. On daily and intraday charts, it has formed a lower top formation, which is broadly negative. We are of the view that, as long as the stock is trading below 1425, the correction wave is likely to continue. Below the same, it could slip till 1340-1300. On the flip side, a fresh uptrend rally is possible only after 1425. Above which, it could move up to 1450-1465. 

(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.)