Tata Investment Corporation, Coal India and KEC International: Buy, sell or hold—What should investors do with these stocks? ​

After five months, the broader Nifty50 swung back to reclaim 18,000-mark as the domestic market traded with strength amid support from Foreign Institutional Investors (FIIs) and positive global cues. The 30-share Sensex too jumped around 450 points to touch the day's high of 60,551.07.  Sectorally, Consumer Durable led the rally on Tuesday as the index gained more than one per cent, while midcap and smallcap 0.4% and 0.25% respectively in the broader market. 

"The ongoing market rally is primarily driven by the sudden reversal of FII strategy from relentless sellers to relentless buyers. Retail investor support and fundamental support to the market from a strong economy are aiding the rally," he said.  

He further said that the FII buying is all set to continue since the dollar index has declined to 108. 
"Bank Nifty is likely to be the first sector to touch new record highs since the segment has strong fundamental support and FIIs have turned into big buyers in financials," the expert added. 

Earlier, certain stocks came into focus on Monday. These stocks were KEC International, Coal India, Tata Investment Corporation. KEC International ended higher by almost 10 per cent to Rs 443.95 per share on the BSE on Monday. Shares of Coal India declined two and half per cent and Tata Investment Corporation rose seven per cent to Rs 1957.95 per share on the BSE. 

Here is what Jatin Gohil, Technical & Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks.     

KEC International - Buy  

After a higher level of reversal, the stock formed a base around its long-term moving average (100-day SMA), which was placed at around Rs400. Later, the stock bounced utilising prior consolidation and rose to a 1-month high of Rs450. A substantial rise in volume indicates that major market participants are in favor of the bulls. This could lead the stock towards Rs480 initially and Rs505 subsequently. A fresh long position can be initiated at the current juncture and on dips towards Rs430 for a desired action. In case of any decline, now the stock will find support around its upper band of the base, which is placed at around Rs410.   

Coal India – Sell   

The stock formed a rounding top pattern after testing its prior point of polarity, which was placed at around Rs240 and poised for a short-term decline. The key technical indicators gave a sell signal after a bearish divergence. This could drag the stock towards its 50-day EMA (Rs215) initially and 100-day SMA subsequently (Rs199). In case of any rebound, its prior point of polarity will cap the up-move. However, a stable move above that point will invalidate probable decline in the stock.   

Tata Investment Corporation – Buy   

In late-Aug’22, the stock surpassed its medium-term supply zone (Rs1,564-1,589) and resumed its up-move subsequently, which took it to the new life-time-high of Rs1,973. After a breakout, its volume remained above average. The key technical indicators are in favor of the bulls on major timeframe charts. The stock may respect the psychological level of Rs2,000 before a fresh up-move. A stable move above the psychological level could lead the stock towards Rs2,350 initially and Rs2,500 subsequently. A Fresh long position can be initiated at the current juncture and on dips towards Rs1,900 for expected gain. In case of any decline, the stock will find support around its 13-day EMA (Rs1,720). Since 18th Jul’22, the stock remained above that moving average and moved higher. 

(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.)