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Trade Spotlight | What should investors do with NALCO, PNB and Tata Power?

Here's what Vikas Jain of Reliance Securities has to say about these three stocks when the market resumes trading today

October 19, 2021 / 07:37 AM IST
 
 
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The benchmark indices soared to new highs on October 18, powered by IT, metals, banking & financials and select FMCG stocks.

Indices extended gains for seventh consecutive session, with the Sensex closing 459.64 points, or 0.75 percent, higher at 61,765.59 and the Nifty was up 138.50 points, or 0.76 percent, at 18,477.

The broader markets, too, participated in the rally, the Nifty midcap 100 index was up 1.17 percent and the smallcap 100 index rose 0.7 percent.

Stocks that were in focus included aluminium company NALCO which hit a multi-year high before closing with 13.10 percent gains at Rs 121.70 and Tata Power Company, which was the biggest gainer in the F&O segment hitting a record high of Rs 264.85 and closing with 15.59 percent gains at Rs 257.30.

Public sector lender Punjab National Bank was the top gainer in the Bank Nifty. It hit an intraday high of Rs 48.20, the highest since February 2020, to settle at Rs 46, up 8.11 percent.

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

NALCO

The stock has given a 10-year breakout with strong volumes on the back of up move in aluminium prices in the global markets.

We believe the current up move can witness some exhaustion in the range of Rs 132-142, which is the all-time high it tested in the year 2008.

Any decline near the last month's high of Rs 109 would be a good opportunity to add longs. We advised "hold" with a target of Rs 135.

Image118102021Tata Power Company

The stock is one of the best performers in the power sector after a breakout from its confluence of averages of four-month narrow range.

One should follow a trailing stop of Rs 210, being the weighted average of the previous week after a sharp up move.

On the higher side, one can book profit in the range of Rs 300-320 being the double of the previous all-time high of Rs 160 in the year 2008. We advised holding the stock with a target of Rs 320.

Image218102021

Punjab National Bank

The stock is one of the major underperformers among the banking sector and attempting to breakout from its consolidation. It has a minor resistance near Rs 50, which is the 34-month average and can inch upwards in the current momentum.

On the higher side, it can test Rs 55 levels over the next few months. We advised holding the stock with a target of Rs 55.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are his own and not that 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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