Trade Spotlight: What should investors do with BEL and Happiest Minds?

Indian market closed in the red for the fourth consecutive day in a row on Thursday pushing the Nifty50 below crucial support levels of 15,700. However, technical experts feel that as long as the index trades above 15550-15650, bulls could make a comeback. Sectorally, the action was seen in auto, consumer discretionary, FMCG, and consumer durables, while profit booking was visible in power, telecom, IT, and Energy stocks. Stocks that were in focus include Bharat Electronics which rose nearly 4 percent to hit a 52-week high, and Happiest Minds saw gains of over 13 percent. All stocks hit their fresh 52-week high on Thursday. Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:- Happiest Minds: Post Rs. 955 breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 940 to Rs.1180 within a short period of time. The rally was price dominating and the volume activity has been modest. On the daily and weekly charts, it has formed a strong price-volume breakout structure which clearly suggests a further uptrend from current levels. For the swing traders, Rs.1055 should be the trend decider level. We can expect a continuation of uptrend up to Rs.1300 as long as it trades above Rs.1055 levels. On the flip side, below Rs. 1055 uptrend would be vulnerable. BEL: On July 1st, the stock made a fresh 52–week high of Rs. 185.90. In the previous month, it rallied over 16 percent, and the important point is that the stock not only surpassed its previous 52-week high of Rs. 160 but comfortably managed to sustain above the same. The V-shaped uptrend rally surprised most traders as well as investors. On the daily and weekly charts, the stock has formed a breakout continuation pattern, which is grossly positive for Bharat Electronics Ltd. However, on the short-term time frame, the momentum indicators suggest that the stock is in an overbought zone and there are high chances of a quick short-term price correction which cannot be ruled out if the stock trades below Rs. 172.50.

For the next few trading session, Rs.172.50 should be the trend decider level for the bulls. And if it sustains, we can expect a continuation of uptrend towards Rs. 195-200.Further uptrend may also continue which could lift the stock up to Rs. 210 on the flip side, dismissal of Rs. 172.50 could possibly trigger short-term correction till Rs. 161. Disclaimer: The views and investment tips expressed by the expert on Moneycontrol.com are his own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.