Hindustan Zinc, Birla Corp & MRPL: Buy, Sold, Hold?
For the second consecutive day in a row on Tuesday, Indian market closed with gains of over 1 percent. For the first time since April 1, Bulls pushed the S&P BSE Sensex above 50,000 while Nifty50 also closed above 15000 for the first time since March 12.
On the broader markets front, the S&P BSE Midcap index rose nearly 2 percent while the S&P BSE Smallcap index closed with gains of 1.3 percent.
Stocks that were in focus include Hindustan Zinc which rallied over 9 percent to hit a fresh 52-week high, Birla Corp and MRPL closed that with gains of over 8 percent each. All the stocks hit a fresh 52-week high on Tuesday.
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:
1. Hind Zinc: Buy on Dips
Hind Zinc registered a breakout after a 4-month consolidation in a range of Rs 330 – 260 levels. Hence, as long as it sustains above Rs 320 levels, it remains a buy-on-dip opportunity. This range breakout target itself is placed around Rs 400 levels. A stop-loss suggested for this positional trade is below Rs 320 on a closing basis.
2. Birla Corp: Book Profits
Birla Corp has resumed its uptrend, after the recent correction from the highs of Rs 1014 to 907 levels, a couple of weeks back. This current vertical up move of the last three weeks brought the stock at the upper boundary of the 37-days old channel. However, close above Rs 1230 levels.
3. MRPL: Hold
MRPL is in a bear market as it is down from the highs of Rs 147 registered in the year 2017 to a low of Rs 20. Since then, it appears to be in the bear market rally and making a channelled move on the weekly charts and currently facing resistance at the upper boundary of the said channel.
Hence, traders are advised to hold this counter with a stop below Rs 49 on a closing basis and prefer booking profits if it fails to get past Rs 56 on a closing basis in the next two trading sessions. In case if it manages to register a close above Rs 56, a higher target of Rs 67 can be expected.