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Trade Spotlight | What should investors do with Triveni Turbine, BEL, Jamna Auto, India Cements and Motherson Sumi?

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

January 17, 2022 / 07:20 AM IST
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On January 14, the market fell sharply for most part of the day following weak global cues, but recovered smartly in afternoon trade and finally settled on a flat note. The Nifty50 recovered more than 100 points to close at 18,255.80 with loss of 2 points, while the BSE Sensex was down just 12.3 points at 61,223.

The Nifty Midcap 100 index also ended flat with a negative bias, but Smallcap 100 index gained 0.75 percent. Select Auto, FMCG, Banks and Metals stocks were under pressure, however, the buying was seen in IT stocks.

Stocks that were in focus included Jamna Auto Industries which hit a fresh record high of Rs 122.60 before closing at Rs 119.75 with 6.87 percent gains, and India Cements which hit multi-year high of Rs 259.95 before settling 3.92 percent higher at Rs 254.75.

Among others, Bharat Electronics was the second biggest gainer in the futures & options segment, rising 5.03 percent to Rs 220.10 and Triveni Turbine shares rallied 13.01 percent to Rs 202. However, Motherson Sumi Systems fell 21 percent to Rs 185.55 ahead of record date for demerger of domestic wiring harness business.

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

Close

Triveni Turbine

With current close, the stock has decisively broken out its past 6-8 weeks' consolidation range (Rs 197-170) on a closing basis. This consolidation was observed around its 100-day simple moving average (SMA - Rs 171) which remains a crucial support zone in the near term.

Currently the stock is well placed above its short and medium term important moving averages (20, 50 and 100-day SMA) which reconfirms bullish sentiments. The daily band Bollinger buy signifies increased bullish momentum.

On a week-on-week basis rising volumes are observed which signals increased participation in the rally. Investors should buy, hold and accumulate this stock with an expected upside of Rs 220-235, with downside support zone of Rs 178-170 levels.

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Bharat Electronics

With Friday's 5 percent gains, the stock has violated its "multiple resistance zone" of Rs 217 on a closing basis indicating strong comeback of bulls. Rising volumes at breakout zone signals increased participation. This buying was observed from its 20 and 50-Day SMA (Rs 209) which reconfirms bullish sentiments. The daily band Bollinger buy indicates increased volatility.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 240-255, with downside support zone of Rs 210-207 levels.

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Jamna Auto Industries

The stock is in a strong up trend across all the time frames, forming a series of higher tops and bottoms. With current close, the stock has broken out its past three months' consolidation range (Rs 115-98) on a closing basis indicating resumption of earlier up trend.

It is also well placed above its 20, 50 and 100-day SMA which reconfirms bullish trend. Huge volume spurt at breakout zone of Rs 115 levels indicates rising strength on rallies.

The daily and weekly band Bollinger buy signifies increased bullish momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 130-145, with downside support zone of Rs 110 levels.

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India Cements

On the daily chart, the stock has witnessed a "rounding bottom" breakout at Rs 227 levels along with huge volumes. With current close, the stock has also poised for "flag" - a continuation formation at Rs 254 levels. These all signal good potential of up move in the near term.

Past couple of weeks, huge rising volume signals participation in the rally. The weekly band Bollinger buy suggests increased bullish momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 265-285, with downside support zone of Rs 235 levels.

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Motherson Sumi Systems

With current week's price drop of almost 22 percent ahead of company's record date for demerger undertaking. The stock has violated its one year "consolidation range" (Rs 258-195) on a closing basis indicating shift of trend towards down.

Hence the short to medium term trend changed to bearish. The stock is also quoting below 20, 50, 100 and 200-day SMA which reconfirms weakness. Any relief rally towards Rs 200-220 remains as an exit opportunity for short term traders.

Investors and traders should exit this stock on a rally on any bounce back towards Rs 200-220-230 levels, with a major supply zone of Rs 250-260 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.



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