Tata Communications, Aegis Logistics and IndusInd Bank shares: Should you buy, sell or hold?

The Indian market continued to trade firm as the benchmarks gained amid improved sentiments, including FIIs turning buyers, and positive cues from Asian markets.  

The broader Nifty50 opened strong at 16,661.25 and traded at the day's high of 16,704.80 in Friday's intraday trade. The Sensex too started at 55,800.84 and jumped by another 200 points to 56,006.22 in Friday's early trade.  

Speaking on the Nifty, Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said the Nifty has seen a strong traction this week.  

"The 20 DMA acted as a springboard from where the index has taken the current leap. The hourly chart shows that the Nifty had taken support near the lower end of a rising channel in the last week & thereon it has moved up towards the upper end on July 20," he said. 

Nifty has achieved its initial short-term target of 16500-16550, thus, it is recommended to take some profit off the table, suggested the expert.   

"Nifty short-term traders can consider booking partial profit at current level. A fresh long position can be initiated if Nifty crosses July 20’s high of 16588. Till then there is possibility for Nifty to fill up the recent gap of 16490-16360," he added.  

On Friday, Nifty Midcap and Smallcap erased early gains to trade higher by around 0.1% each as India VIX slipped below 17-mark. 

Sectorally, IT, energy and healthcare stocks saw some profit booking, while others saw good buying interest in early trade on Friday. 

Meanwhile certain stocks came in focus on Thursday. These stocks were Tata Communications, Aegis Logistics and IndusInd Bank.  

Here is what Gaurav Ratnaparkhi recommends investors should do with these stocks:  

1.       Tata Communications 

The stock has been witnessing a gradual recovery since the second half of June. On the way up it has crossed certain short-term barriers, including the key daily moving averages. These averages acted as supports for the recent minor degree dip. Thereon, the stock has started the next leg up. It had a strong leap on July 21, which was accompanied by large volumes. So, the stock is expected to head towards its 200 DMA, which is near 1200   

2.       Aegis Logistics 

The stock has broken out from a short term as well as medium term consolidation. In terms of the price patterns, it has broken out from a triangular pattern. Larger structure shows that the stock has a potential to form a multi month inverted Head & Shoulders pattern, which is a bullish pattern. Going ahead, 250-251 will be the short-term target area whereas the medium-term target is near 290  

3.       IndusInd Bank 

The stock has seen strong traction this week. The rising prices are being accompanied by increasing volumes, which is a positive sign. On the way up, it has taken out the June 2022 high & has reached the 200 DMA. For the short term, 962 will be the crucial barrier to watch out for. Once that is crossed then the stock can march towards 1029.

(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.)