Buy, sell or hold? What should investors do with ITC, Indian Hotels & GMR Infra shares?
On Monday, sectorally, selling pressure was visible in metals, basic material, public sector, realty and power indices while buying interest was seen in FMCG stocks.
Indian market closed in the red for the second consecutive day in a row on Monday tracking muted global cues. The S&P BSE Sensex closed with a loss of over 500 points while the Nifty50 fell a little over 1 percent.
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Sectorally, selling pressure was visible in metals, basic material, public sector, realty and power indices while buying interest was seen in FMCG stocks.
Stocks that were in focus include ITC which closed with gains of over 1 percent, Indian Hotels rose more than 8 percent, and GMR Infrastructure closed with gains of over 7 percent.
We have collated views from technical experts as to what should investors do with these stocks from short to medium-term perspective:
Expert: Jatin Gohil, Technical Analyst at Reliance Securities
ITC: initiate fresh longs above Rs 239
Continuing its prior daily rising trend, the stock recorded new high of Rs239.35 on Monday. Since Feb’21, the stock tested its 100-month SMA twice, which is placed at around Rs239.
Historically, the stock reversed gains after testing that moving average and slipped to Rs200 which acts as a key technical indicator indicating a bearish divergence on the near-term timeframe chart.
In case of lack of follow-up buying, the stock may witness a near-term decline. However, a stable move above that moving average could lead the stock towards Rs265. Hence, a fresh long position can be initiated only above Rs239.
Indian Hotels: Trend likely to continue
On the 1st of Sep’21, the stock witnessed a breakout from a bullish continuation Flag pattern. The stock extended gain subsequently and explored uncharted territory.
Upward sloping moving averages and positively poised technical indicators signals that the prevailing rising trend will continue.
This could take the stock towards Rs197, which coincides with its probable target based on the Flag Pole breakout. A fresh long position can be initiated at the current juncture and on dips towards Rs155.
GMR Infrastructure: Initiate fresh long above Rs 37
The stock rose to a 7-year high of Rs36.20 on Monday and reported a 16.5 percent gain so far in this month.
In May’14 and Jun’14, the stock faced a hurdle at around Rs37 and reversed down. Our view will remain cautious by the time stock trades below Rs37.
However, a convincing move above that level could take the stock towards Rs43 initially and Rs48 subsequently. Fresh long position can be initiated only above Rs37.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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