Buy, Sell or Hold: what should investors do with Inox, Indian Hotels and GMDC?

Extending losses for the third consecutive session last week, the Indian market ended in the red on Friday as global uncertainties and surging crude prices weighed on the market. The market closed 4 sessions lower amid volatility last week.

The Nifty50 finished below 17,200, while the S&P BSE Sensex settled with cuts over 200 points. Following the benchmarks, Nifty midcap and small cap also ended down 0.12% and 0.49% respectively.

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From a sector perspective, stocks of real estate, oil & gas and PSU bank generated buying interest, while stocks of consumer durables, information technology, consumer staples Consumer and Autos came under selling pressure on Friday.

The shares that were in focus on March 25 were Inox Leisure, which gained more than 6% after the company announced its merger with PVR Limited. Other stocks that took center stage were Indian Hotels which reached a 52-week high of Rs 235.70 and ended with a gain of almost 4% and GMDC which ended ended with a gain of almost 7% at Rs 189.15.

Here’s what Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities Ltd, recommends investors do with these stocks when the market resumes trading today:

Stainless Steel Leisure:
The stock climbed more than 6% on March 25. On Friday, the stock opened with a strong rating and recorded a new 52-week high of Rs 496.80 with strong volume activity. Despite weak market conditions, it maintained its strong momentum throughout the day. In the short term, the action formed a strong breakout in price volume. The texture of the pattern suggests that the breakout action will continue in the near term if the stock manages to trade above the Rs 455 level. For swing traders, Rs 455 would be the sacrosanct level, trading above the same, we might expect a continuation wave of the uptrend to Rs 500-525.

Indian hotels
The title reached a new all-time high of Rs 235.80 on Friday. In this month so far, it has increased by more than 16%. The important point is that the stock not only broke above its short-term resistance of Rs 220, but also managed to close above the same. On the daily and weekly charts, the stock maintains a formation of higher and lower series, which is generally positive for Indian Hotel Ltd. However, in the short term, momentum indicators indicate that the stock is in the overbought zone and the chances of a quick price correction in the short term are not ruled out if it is trading below Rs 215. For the next few trading sessions, Rs 215 would be the decisive level of the trend for the bulls, hold above the same, we could expect a continuation of the uptrend to 250-265 Rs. On the other hand, the Rs 215 redundancy could trigger a quick short-term correction down to Rs 210-200.

In this quarter so far, the stock is up more than 155%. After the price volume breakout in 85, the stock was rapidly soaring. The sharp increase in prices surprised most traders as well as investors. The medium term texture of the chart is positive and should continue in the near term. However, in the short term, the stock is in the overbought zone and profit booking is not ruled out if the stock is trading below the 170 level. On the other hand, above 170 the formation of the uptrend will likely continue to 200 -215. Due to a temporary overbought situation, traders may prefer to take a cautious stance near the 200 resistance level.

(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)

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