Buy, Sell or Hold: What should investors do with KPIT Technologies and Eid Parry?

The Indian markets fell nearly one per cent on Wednesday amid weak global cues and selling pressure from banking and financial stocks. The broader Nifty50 managed to close above 17, 000-mark, while the Sensex settled above 56,800 as huge sell off and volatility in global market forced Indian equity market in the red.  

Amid profit booking, the crucial 12-share Nifty Bank dropped nearly 400 points as the banking index closed near 36,000-level. Besides, Nifty mid cap and small cap indices too ended lower by 0.86% and 0.61% respectively as India VIX settled near 21-mark.  

Sector wise, all Nifty indices closed in the red, however, Nifty Bank, financial services, consumer durables and oil & gas stocks declined the most on Wednesday.  

"Market continued to be gripped by high volatility following a heavy selloff in the global markets led by elevated energy crisis and weak Chinese economic outlook underpinned by prospects of US rate hikes," said Vinod Nair, Head of Research at Geojit Financial Services.  

Meanwhile, amid volatility, stocks that came in focus on Wednesday were KPIT Technologies and Eid Parry. KPIT Technologies gained nearly 13% in a weak market, while Eid Parry closed around 4% lower on Wednesday.  

Here is what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommend investors should do with these stocks when market resumes business on Thursday.  

KPITTECH: The counter is coming out of a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages. 

On the upside, 600 is an immediate resistance area; above this, we can expect a run-up towards 700+ levels in the near term. On the downside, if it will break 500 level then 440 is the next critical zone. 

EID PARRY 

The counter is continuously making higher highs and higher lows formation and now it is taking out multimonth resistance with decent volume that may generate further thrust for a move towards 575/625 levels. On the downside, 510 will act as strong support now. It is trading above its all-important moving averages with a positive bias in momentum indicators.