Star Health, EPL and Prism Johnson shares—Should investors buy, sell or hold these stocks?

Snapping a two-day losing streak, the Indian market staged a smart recovery to end one per cent higher even as anticipation of aggressive interest rate hike by the US Federal Reserve made global markets jittery on Wednesday. Benchmark Nifty 50 gained 0.96% and barometer Sensex rose by 0.99% as the former added 157.95 points to its previous closing to end at 16,641.80, while the latter jumped by 547.83 points to settle at 55,816.32 on Wednesday.  

In the broader market, Nifty Midcap closed in line with the benchmarks, ending higher by over one per cent. However, Nifty small cap erased early gains to close flat.  

"Indian market will react to the global trend in-line with FOMC meeting outcome. We are in a rally during the last one and half months, assuming that much has been factored in the price," said Vinod Nair, Head of Research, Geojit Financial Services. 

The market has not factored in a recession as valuation continues to trade marginally above the long-term trend, said Nair. "Value buying should be the essence of investment till the risk of a recession subsides," the expert advised.  

Meanwhile, certain stocks came in focus on Wednesday. These stocks were Star Health, Prism Johnson and EPL. Shares of Star Health closed with nine per cent gain, Prism Johnson rose more than five per cent and EPL declined six and half per cent on Wednesday.  

Here is what Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, recommends investors should do with these stocks:  

1.       Prism Johnson  

Post a base formation in June, the stock has seen good traction in this month, especially in the last two weeks. The price action is being accompanied by volumes as well, which is a positive sign. The stock is approaching its 200 DMA near 121. Beyond that the stock can head towards 138-140 in the short to medium term.  

2.       Star Health  

The stock witnessed a ‘Two Bar Reversal’ on the weekly chart in the last week of June and in the beginning of July. Since then, it has moved up quite swiftly. The stock is on the course to cross crucial Apr – May swing highs. Overall structure shows that the positive momentum can continue further. On the higher side, 815 will be the key level to watch out for.  

3.       EPL  

The stock attempted a recovery in the last few weeks, however, stumbled near its 200 DMA as well as near the weekly upper Bollinger Band. 185-190 is a strong resistance zone for the counter. Unless this barrier gets taken out, the stock is likely to witness consolidation over the next few weeks. 160-185 is expected to be the broad range for the consolidation.  

(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.)