Buy, Sell, or Hold: What should investors do with Escorts, Blue Star and United Spirits?
The Indian markets snapped 3-day losing streak and closed with gains of over 1 per cent on Monday. The S&P BSE Sensex closed above 60,000 levels, while the Nifty50 closed just below the 18000 levels.
The Indian markets snapped 3-day losing streak and closed with gains of over 1 per cent on Monday. The S&P BSE Sensex closed above 60,000 levels, while the Nifty50 closed just below the 18000 levels.
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Sectorally, buying was seen in the realty, telecom, metal, IT and public sector. Broader markets performed in line with the benchmark indices. The S&P BSE Mid-cap index closed a 1.7 per cent higher, while the S&P BSE Small-cap index was up 1.1 per cent.
Stocks that were in focus include Escorts, which gave up gains and closed with a loss of more than 1 per cent, Blue Star that closed with gains of over 3 per cent, and United Spirits rallied nearly 3 per cent. All stocks hit a fresh 52-week high on Monday.
Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
Escorts Ltd: Partial Profit Taking
After a breakout from the bullish continuation Flag pattern, the stock moved towards its 61.8% Fibonacci Extension level of prior upward move (Rs526-1,453), which was placed at Rs 1,673.
Post its quarterly result announcement, the stock recorded a new high of Rs1,666.35, but due to profit-taking, it erased major intraday gains.
We have observed bearish divergence in the key technical indicators on the short-term timeframe chart. As per the current setup, the short-term decline cannot be ruled out before it resumes the upward move.
This could drag the stock towards Rs 1,445 initially and Rs 1,390 subsequently. Hence, partial profit booking advised for existing long positions.
However, a convincing move above Rs 1,673 could lead the stock towards Rs 2,025, which coincides with its breakout point based on a Flag pole.
Blue Star: Buy on Dips
The stock extended gain post its quarterly result announcements and recorded a new high of Rs 1,050.
Though profit taking erased partial gain, the stock remained up-beat. A rise in volume indicates that the major participants are in favor of the bulls.
Despite a steady rise, its key technical indicators are positively poised on short-term as well as medium-term timeframe charts.
This could take the stock towards Rs 1,190 in the medium term. Fresh position can be initiated only on dips for better risk rewards.
United Spirits: Take profits
Since August 2021, the stock remained upbeat as it ended the month on a positive note and reported an over 50% rise so far. Historically, the stock witnessed time-wise correction after such a stellar rise.
On the higher side, the stock may face a hurdle at the psychological level of Rs 1,000. Hence, profit booking is advised at this juncture.
(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.)
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08:39 AM IST