Triveni Engineering, Ambuja Cements and Escorts Kubota shares: Buy, Sell or Hold—What should investors do with these stocks?

Triveni Engineering and Industries, Ambuja Cements and Escorts Kubota share trading strategy: Ahead of the scheduled FOMC meeting on Tuesday, the Indian market opened higher by more than half per cent amid strong global cues. Benchmarks Nifty50 and Sensex gained more than one per cent in the opening trade as the former traded above 17,800 and the latter higher by around 650 points near 59,800.  All sectoral indices turned green, while Nifty Midcap and small cap surged by more than one per cent in the opening trade.  

On the domestic market outlook ahead of Federal Open Market Committee (FOMC) meeting, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said since globally markets are focused on Fedspeak on the 21st, major breaks from the present levels are unlikely for 2 days.  

"A big correction after the Fed decision is possible only if the rate hike is by 100bp" he added.  

Based on their share movement, some stocks came in focus on Monday. These stocks were Triveni Engineering and Industries, Ambuja Cements and Escorts Kubota.  

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

Triveni Engineering and Industries - Buy  

After a higher level of reversal (i.e., from Rs 375 to Rs 211), the stock respected its 20-month EMA (then placed at Rs202). The stock bounced after forming a base around its key moving average and resumed its up-move subsequently. On 19th Sep’22, the stock witnessed a strong up-move, which took it to a three-month high of Rs 294. Increase in volume signals that major market participants were in favor of the bulls.  

Key technical indicators gave a buy signal on the long-term timeframe chart. This could lead the stock towards Rs350 initially and Rs375 subsequently. A fresh long position can be initiated at the current juncture and on dips towards Rs275 for a desired action. In case of any decline, the stock will find support around Rs245-240 zone, where its key short-term moving averages (20-day and 50-day EMAs) are placed.   

Ambuja Cements - Hold  

In August’22, the stock witnessed a breakout from bullish flag pattern and extended gain subsequently. This took the stock from Rs274 to a record high of Rs572 quite rapidly. The stock is trading near to its breakout point, which is placed at Rs580. 

The key technical indicators are positively poised on long-term as well as medium-term timeframe charts, while its short-term indicators tested the overbought zone and may reverse. Hence, price-wise correction or time-wise-correction cannot be ruled out before a fresh up-move.  

In case of price-wise-correction, the stock may find support around Rs520-510 zone. However, a stable move above its breakout point could lead the stock towards Rs690. Fresh long positions can be initiated on dips, as risk reward is not favorable at current juncture, while existing ones can be held by trailing the stop loss for desired result.  

Escorts Kubota - Buy  

After a higher level of reversal, the stock again respected its upward sloping 20-day EMA (Rs1,943) and bounced, which took it to the new high of Rs2,123. Substantial rise in volume and its future Open Interest signals that major market participants were in favor of the bulls.  

The key technical indicators are positively poised on medium-term as well as short-term timeframe charts. The stock has potential to explore uncharted territory, which could take the stock towards Rs2,285-2,300 zone initially and Rs2,500 subsequently. In case of any decline, the stock will continue to find support around its 20-day EMA. 

(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.)