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Trade Spotlight: What should investors do with IEX, Max Healthcare & Deepak Nitrite?

Here's what Vikas Jain of Reliance Securities recommends investors should do with these stocks when the market resumes trading today:

August 31, 2021 / 07:18 AM IST
 
 
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Indian market hit fresh record highs on Monday pushing benchmark indices into unchartered territory on positive global cues. Nifty50 hit a high of 16,951 while the S&P BSE Sensex rose to 56,958 in trade.

Sectorally, buying interest was seen in telecom, metals, power, and utilities while selling pressure was visible in IT.

Stocks that were in focus include IEX which rallied over 10 percent, Max Healthcare (up 7 percent), and Deepak Nitrite (up over 6 percent). All three stocks hit a fresh 52-week high on Monday.

Here's what Vikas Jain, Senior Research Analyst, Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Deepak Nitrite: Book Profit

Close

The stock scaled a record high crossing its previous peak highs near Rs 2000 levels, but it lacks volume in the current momentum.

The Relative Strength Index (RSI) has inched upwards to 75 levels and the risk-to-reward ratio is not in favour of longs, and one should wait for a minor retracement.

We would recommend investors/traders to book profit at current levels.

Max Healthcare: Hold| Target: Rs 400

The stock is making a new high every month since December 2020 with strong volumes and positive momentum in the sector.

On the downside, the stock has strong support near to Rs 320 levels with respect to its short-term moving averages and intermediate fortnightly lows.

The current up move can take the stock higher towards Rs 400 levels

IEX: Hold |Target: Rs 530

The stock has witnessed a breakout from his cup and handle pattern with strong volumes and scaled an all-time high

Post inclusion, the derivatives OI (Open Interest) has jumped significantly indicating a long build up in the stock

We expect the stock to achieve the target of Rs 530 of the cup and handle pattern.

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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