Sector wise, buying was witnessed in realty, telecom, capital goods, banks and financial stocks, while selling was witnessed in IT, consumer durables and oil and gas stocks.
The stocks that were in focus included names like
Which was up nearly 6 percent, rose over 17 percent, and hit a 52-week high with strong volumes.
Here’s what Rahul Gaur, Research Analyst – Equity Research, Capitalvia Research, said here’s what investors should do with these stocks when the market starts trading today:
Jyothi Labs: Buy
FMCG company Jyothi Laboratories has many brands and many products. Its main business activities include the production and distribution of fabric whiteners, soaps, detergents, insect repellents, scrubbers, body care products and incense sticks.
It is currently selling at a price-to-book ratio of 4.72 against the sector’s PB of 9.11, which suggests undervaluation.
The shares have given a return of 14.43 per cent in the last one year. Since 2014, the company has been generating free cash flow, which demonstrates the strength of its financial sheets.
Technically, the stock has broken out of the head and shoulders pattern. Investors can buy the company at the current market price of Rs 190 with a stop loss of Rs 174 and a short-term target price of Rs 235.
RBL Bank: Avoid
RBL Bank is a banking organization that provides services and goods to consumers and small enterprises.
The lender’s board on Wednesday approved raising up to Rs 3,000 crore. The money will be used to boost the commercial expansion of the lender and the stock is now trading at Rs 110.
Technically, the stock has been trending bearish since September 2019 and is currently trading at a resistance level; Hence, we suggest investors to avoid the stock and buy it at a drop of around Rs 80 with a stop loss of Rs 70 for a target price of Rs 105.
Solar Industry: Buy
manufactures explosives. The business produces, distributes and exports starting systems and industrial explosives. The stock has gained 102.51 per cent in the last one year.
Revenue growth in the last five years has averaged 20.02 percent every year, reflecting the company’s leadership as compared to the industry average of 15.75 percent. Technically, the stock is trading at or near all-time highs with high volume, which shows that market participants are confident.
Investors can buy shares of the company above Rs 3451 with a stop loss of Rs 3370 and a short term target price of Rs 3600.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)