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Trade Spotlight: What should investors do with Suzlon, Astral Poly & EID Parry?

All three stocks hit their respective fresh 52-week high on Wednesday.

December 31, 2020 / 09:04 AM IST
 
 
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Indian markets closed in the green for the sixth consecutive day in a row on December 30 pushing benchmark indices to a fresh record high. The S&P BSE Sensex hit a high of 47,807 while the Nifty50 inched closer to 14,000.

At close, the Sensex was 133 points higher at 47,746 and the Nifty was 49 points higher at 13,982.

Sectorally, the action was seen in auto, realty, metal, consumer discretionary, and consumer durable stocks, while profit-booking was seen in telecom, IT, and healthcare stocks.

Stocks in focus included Suzlon Energy which rallied nearly 5 percent, Astral Poly (7.5 percent), and EID Parry (over 5 percent).

All three stocks hit their respective fresh 52-week high on Wednesday.

Close

We have collated views of experts on what investors should do when the market resumes trading on December 31:

Expert: Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)

Suzlon - Exit

It was one of the favourite stocks of traders before the 2008 crash. However, the stock corrected sharply in 2008 from its high of Rs 446 and became a single-digit price stock.

Post that, it has been a laggard and has consolidated in a range since the last few years. Of late, the stock has witnessed some back to back upper circuits to catch up in the current bull market.

However, such up moves in the bull market are used to exit from stocks that one has regretted buying and hence, it is advisable to avoid buying such penny stocks and use this rally to exit. The resistance for the stock on the charts is seen around Rs 7.5-8.

Astral Poly - Hold

The stock is in an uptrend as it has been forming a ‘Higher Top Higher Bottom’ structure for the last few months.

Recently, the price up moves has also been supported by good volumes which is a healthy sign. The ‘20 DEMA’ has been acting as a support and the momentum readings too are indicating a positive trend.

Hence, traders are advised to continue to ride the trend with a stop loss placed below Rs 1590 for a probable target around Rs 1900 in the near term.

EID Parry - Hold

The sugar sector has been in a sweet spot in this Bull Run and this stock too has recovered post the correction in the month of March 2020. It has gradually moved higher and is now nearing its previous all-time high.

The volumes in the recent up move are good as compared to its historical volumes which indicates a buying interest in this counter.

We expect this stock to continue its uptrend as the chart structure remains positive. Traders and investors should continue to hold their existing positions for a target around Rs 375-380.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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