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Trade Spotlight | What should investors do with Bectors Food, IOL Chemicals, Lux Industries, BHEL, Manappuram Finance on Monday?

IOL Chemicals and Pharmaceuticals is poised for short-term breakout of Rs 440, hence any strong close above Rs 440 level may lead upside momentum towards Rs 480-510 levels.

April 04, 2022 / 07:24 AM IST
 
 
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It was a strong start to the April series as well as the financial year FY23 as the market registered more than one percent gains with support from banks, financial services, auto and FMCG stocks. Declining oil prices, falling volatility, and improving global sentiment amid peace talks between Ukraine and Russia also supported the market.

The BSE Sensex jumped more than 700 points to close near 59,300 levels and the Nifty50 climbed more than 200 points to end at 17,670 while the run-up in the broader space was more than benchmarks as the Nifty Midcap index gained 1.5 percent and Smallcap index rose 1.7 percent.

Stocks that were in action include Mrs Bectors Food Specialities which was locked in 20 percent upper circuit at Rs 336.40; and IOL Chemicals and Pharmaceuticals which was also frozen at 20 percent upper circuit to close at Rs 424.40.

Other stocks that were in positive mood include BHEL which was the top gainer in the the futures and options segment, rising nine percent to Rs 54; Manappuram Finance which was the second biggest gainer in the derivatives segment, climbing 6.3 percent to Rs 120.70; and Lux Industries which rallied sharply by 15.6 percent after a long time to close at Rs 2,533.

Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Close

Mrs Bectors Food Specialities

The short to medium term trend remains weak as the stock continues to trend lower forming a series of lower tops and bottoms across all time frames. However, with Friday's strong gain the stock has closed at the upper circuit limit gaining 20 percent. This strong buying momentum was accompanied with a huge volume spurt indicating increased participation at lower levels.

The stock has recaptured its 20 and 50 day SMA (simple moving average) and closed above the same indicating positive bias. The daily weekly and monthly RSI (relative strength index) continues to remain in bullish mode along with positive crossover which supports sustained strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 360-385, with downside support zone of Rs 300-280 levels.

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IOL Chemicals and Pharmaceuticals

The overall short to medium term trend remains weak as the stock continues to trend lower forming a series of lower tops and bottoms across all time frames. However, with Friday's strong gain the stock has closed at the highest point of the day gaining 20 percent.

The stock is poised for short term breakout of Rs 440, hence any strong close above Rs 440 level may lead upside momentum towards Rs 480-510 levels. Increased volumes at lower levels signifies strong accumulation at lower levels.

The daily weekly and monthly RSI continues to remain in bullish mode along with positive crossover which supports sustained strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 480-510 with downside support zone of Rs 380-350 levels.

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Lux Industries

The overall short to medium term trend remains weak as the stock continues to trend lower forming a series of lower tops and bottoms on the daily and weekly time frames. The weekly price action has formed an "Engulfing Bullish" pattern and surpassed the past four weeks' multiple resistance zone on a closing basis indicating short-term trend reversal.

This strong buying momentum was accompanied with a huge volume spurt indicating increased participation at lower levels. The daily weekly and monthly RSI continues to remain in bullish mode along with positive crossover which supports sustained strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,800-3,000 with downside support zone of Rs 2,330-2200 levels.

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BHEL

On the daily chart, the stock has witnessed a shift of trend as it confirmed higher top and bottom formation. With Friday's close the stock is also poised for six-month downsloping trendline breakout at Rs 55-56 levels and hence any decisive breakout above the same may lead further momentum towards Rs 65-70 levels.

Currently the stock is well placed above its 20 and 50 day SMA which remains a positive sign. Huge volumes at lower levels signal strong accumulation at lower levels.

The daily weekly and monthly RSI continues to remain in bullish mode along with positive crossover which supports sustained strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 63-70 with downside support zone of Rs 49-45 levels.

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Manappuram Finance

The overall short to medium term trend remains weak as the stock continues to trend lower forming a series of lower tops and bottoms on the daily and weekly time frames. For the past six weeks, the index continues to consolidate within Rs 122-110 levels indicating short-term sideways trend and hence any either side breakout may confirm further direction.

The stock has recaptured 20-day SMA along with huge volumes indicating strong comeback of bulls.

The daily weekly and monthly RSI continues to remain in bullish mode along with positive crossover which supports rising strength at lower levels.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 130-145 with downside support zone of Rs 113-109 levels.

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Disclaimer: The views and investment tips expressed by investment 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.
Sunil Shankar Matkar
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