Buy, Sell or Hold: What should investors do with Tech Mahindra, Borosil Renewables and KPR Mills stocks? Experts recommendations

Indian market snapped a four-day losing streak on Thursday supported by gains in IT, energy, consumer durables, and oil & gas stocks.

On the broader markets front – the S&P BSE Mid-cap index was down 0.7 per cent, and the S&P BSE Small-cap index fell 0.65 per cent – underperforming the benchmark indices.

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Stocks that were in focus include Tech Mahindra pared gains but closed with gains of 0.6 per cent, Borosil Renewables closed with gains of 5 per cent and KPR Mills closed with gains of over 7 per cent on Thursday.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Tech Mahindra: Avoid Fresh Buying

Albeit this counter managed to break into uncharted territories with new life highs of 1667 levels it is registering indecisive formations for the last three trading sessions.

The price action not only shows a lack of conviction of bulls in an upward direction but also makes this counter remains vulnerable to a sudden sell-off.

Hence, it not only needs to sustain above 1640 levels but should also register a strong bullish candle to boost the morale of bulls and attract fresh buying.

In that scenario, a higher target of 1750 can be expected. For time being fresh buying should not be considered but traders who already own this counter should maintain a stop below 1640 on a closing basis and look for a target of 1750.

Borosil Renewables: Exit

Interestingly, this counter is in a steady uptrend and rallied from the lows of 564 to 722 levels in the last 5 sessions in a turbulent market. This is showing some kind of inherent strength present in this counter.

However, technically speaking it registered a Hanging Man kind of formation which hints at the exhaustion of rally. Moreover, this formation occurred around the upper boundary of the 46-Day old ascending channel.

Hence, in the next session, unless it closes above 736 levels with a strong bullish candle it may remain vulnerable to a selloff.

Hence, positional traders who already own this counter should exit in the next session. In case if this counter closes above 736 level then a higher target of 790 can be expected.

KPR Mills: Buy on Dips

This counter appears to have resumed its uptrend after a corrective and consolidation move of 5 weeks. Moreover, the last 32 weeks of price action seem to have chalked out an ascending channel.

Hence, sustaining above 560 levels it can head towards the upper boundary of the said channel whose value, for next week, is placed around 640 levels, and thereafter it needs a fresh breakout.

Fresh buying is advised only on a dip into the zone of 590 – 580 levels for a target of 640 but with a stop below 560.      

(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.)