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Trade Spotlight: What should investors do with Chennai Petro & L&T Technologies?

Stocks in focus included Chennai Petro which plunged by 20 percent and L&T Technology Services which rose by about 6 percent.

January 28, 2021 / 07:47 AM IST
 
 
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Indian markets closed in the red for the fourth consecutive day in a row on January 27 pushing benchmark indices below crucial support levels. The S&P BSE Sensex plunged nearly 1,000 points while Nifty50 closed below 14,000.

Sectorally, selling pressure was seen in Banks, Finance, Metals, Realty, Auto, Energy, Oil & Gas which were down more than 2 percent each.

On the broader markets front - the S&P BSE Midcap index fell 1.3 percent while the S&P BSE Smallcap index fell 0.5 percent – outperforming the benchmark indices.

Stocks in focus included Chennai Petro which plunged by 20 percent and L&T Technology Services which rose by about 6 percent.

We have collated views of experts on what investors should do when the market resumes trading on January 28:

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

Chennai Petro - Avoid/Exit

In the last three months, this stock has seen a sharp pullback move and has given a decent up move from its lows. However, post the quarterly results, the stock opened gap down, and then we saw follow up selling which was characterised by high volumes.

Sharp selling indicates that traders and investors’ lack of confidence in the short to medium term. Hence, one should avoid any bottom-fishing in the stock and exit existing longs on pullback moves.

The near-term supports for the stock are placed around Rs 88 followed by Rs 84 and these levels could be tested soon.

L&T Technologies - Hold

This stock gave a breakout from a long consolidation phase in the first week of January. Post the breakout, we witnessed good volumes along with price up move and after making a high of Rs 2749, prices have seen some correction in the last few sessions.

However, this just seems to be a corrective phase within an uptrend as there are no signs of a trend reversal. Hence, traders should continue to hold existing longs and use such declines in an uptrend as a buying opportunity.

The short-term support for the stock is placed around Rs 2,300 while resistance is seen around Rs 2700.

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.
first published: Jan 28, 2021 07:47 am

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