Buy, Sell or Hold: What should investors do with ONGC, GMDC and Indigo Paints?
Indian market plunged on Monday with BSE Sensex and Nifty50 falling over 2.5 per cent each amid a continuous surge in the crude oil prices as well as rising geopolitical concerns. The S&P BSE Sensex plunged nearly 1500 points while the Nifty50 closed below 15900 levels.
Sectoral selling pressure was seen in realty, banks, auto, and capital goods while some buying was seen in metals, telecom as well as oil & gas.
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Stocks that were in focus include ONGC which closed with gains of over 13 per cent, GMDC also rose over 3 per cent and Indigo Paints pared plunged nearly 9 per cent on Monday.
Here’s what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stoc
ONGC: Recommendation: Buy on dips | Target: Rs230 | Time Duration: 1-2 Months
On 7 March 2022, the stock managed to surpass its medium-term supply zone, which was placed around Rs 175-180 and rose to a new 52-week high of Rs189.80.
Its major moving averages are sloping upwards on medium-term timeframe charts, while its key technical indicators are positively poised.
This could lead the stock towards Rs210 initially and Rs230 subsequently.
In case of decline, its 20-week EMA will continue to work as a strong reversal point, which is placed at Rs158.
GMDC: Recommendation: Buy on dips | Target: Rs260 | Time Duration: 3-4 Months
Since December 2021, the stock witnessed an exponential rise, as it jumped from Rs 65 and rose to Rs 173.
The stock is near its long-term supply zone, which is placed around Rs 180-187.
The key technical indicators are positively poised but stuck around their overbought zone.
Hence, higher level profit booking cannot be ruled out before a fresh up-move starts.
Profit booking could drag the stock towards the Rs 145-125 zone, which will provide better risk-reward for a fresh long trade.
However, a stable move above that supply zone (Rs180-187) could lead the stock towards Rs222 initially and Rs260 subsequently.
Indigo Paints: Recommendation: Sell on rise | Target: Rs 1,080 | Time Duration: 1-2 Months
After a stellar listing, the stock witnessed profit booking and despite a consolidation, failed to resume its up-move.
Since August 2021, the stock ended the month on a negative note and so far reported a fall of 70%.
Its major technical indicators tested their oversold zone on short-term as well as medium-term timeframe charts.
Hence, a pullback cannot be ruled out before its southward journey resumes.
A pullback could take the stock towards Rs1,800 and Rs1,900, which will provide a better risk-reward for a fresh short trade.
In case selling pressure intensifies, this could drag the stock towards Rs1,330 initially and Rs1,080 subsequently.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)