Buy, Sell or Hold: What should investors do with Gujarat Alkalies, Edelweiss Financial and Axis Bank?

The Indian markets ended negative on the last day of FY 2022 on Thursday amid mixed global cues. Benchmarks Nifty50 and the Sensex corrected nearly 0.20% each on Thursday, however, they grew by more than 18% in the last financial year.  

On Thursday, Nifty 50 settled below 17,500 and the 30-share index dropped more than 100 points to end at 17,464.75 and 58,568.51 respectively.  

Nifty midcap and small cap indices, which ended with over 25% and more than 28% gains at the end of FY 22, sat in the green as they closed higher by 0.3 and 0.7% respectively.  

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Sectorally, buying was seen in FMCG and Private Bank stocks, while Pharma, healthcare and PSU Bank were top laggards in a weak market. 

Stocks that were in focus on Wednesday were Gujarat Alkalies, which closed with over 4% gains after trading on fresh 52-week high value, Edelweiss Financial that jumped 15% in the closing after touching 52-week low and ONGC which closed higher by 2% in the closing trade on March 31.    

Here’s what Gaurav Ratnaparkhi: Head of Technical Research, Sharekhan by BNP Paribas, recommends investors should do with these stocks when the market resumes trading today:   

1.       Gujarat Alkalies 

Gujarat Alkalies has been in a strong up trend from short term as well as medium term perspective. The momentum indicators on the daily & weekly time frames are in line with the rally. We expect this positive momentum to continue going ahead. Till the time the stock maintains a higher top higher bottom formation on the daily chart i.e. till the time it trades above the level of 852 it is expected to stay on the upward trajectory. On the higher side, the stock is stone’s throw away from the all time high of 935. Once that is crossed on a closing basis, the stock can target 1110 on the upside 

2.       Edelweiss Financial 

Edelweiss Financial is a substantially beaten down stock that has now entered pullback mode. The recent lower low in the price was not accompanied by a lower low in the daily & weekly RSI; thus developing positive divergences on these time frames. Also, our daily momentum indicator has formed a bullish hook pattern, which is a bullish sign. Thus the stock has taken a strong leap on the upside & it is expected to head towards the crucial weekly moving averages, which are near 66-68. So that will be the key short term target area to watch out for 

3.       Axis Bank 

Axis Bank witnessed a brief consolidation near the key daily moving averages in the last week. This week it has broken out from the consolidation on the upside. It formed a bullish outside bar on the daily chart recently & is seeing follow through of the bullish bar pattern for the last few sessions. On the higher side, however, it has reached its daily upper Bollinger Band, which is keeping the rise in check for the last couple of sessions. Thus over the next few sessions, the stock is expected to witness range bound action near 720-770 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)