Big Movers on D-St: What should investors do with UCO Bank, FACT and JK Paper?

Indian market closed in the red on Wednesday for the second consecutive day following muted global cues. S&P BSE Sensex fell more than 600 points while Nifty50 closed below 18,200 levels.

Sectorally, buying was seen in healthcare and IT stocks while selling was visible in utilities, power, telecom, and public sector.

Stocks that were in focus include names like UCO Bank which was up over 2%, FACT which hit a fresh 52-week high and closed with gains of over 1%, and JK Paper which closed in the red as it failed to hold on to the gains after hitting a fresh 52-week on Wednesday.

Here's what Rameshver Dongre, Research Analyst - Equity Research at CapitalVia Global Research Ltd recommends investors should do with these stocks when the market resumes trading today:

UCO Bank: Buy
Technically, UCO Bank's recent trend is bullish on the weekly chart. The stock is presently trading at about 6% down from its 52-week high.

Currently, it is in a short-term correction. The stock can find support near the 31 level. Long-term investors should keep holding their positions as long as it sustains above the major support level placed around Rs 22. On the higher side, 36 and then 44 levels can be seen.

FACT: Buy on Dips
Fertilizer stocks are on a bullish trend in December so far. The farming sector is expected to have a good 2022-23 rabi season because of healthy monsoons.

Also, GOI may announce incentives for the Agri sector in the Union Budget which also added momentum to FACT's stock.

On Wednesday, the stock hit a fresh 52-week high. Technically, the RSI is above 80 which suggests some profit booking can be seen.

For fresh entry, a trader should wait for the correction and then make a position in the support range of 260-270 and hold the position with a stop loss of 220. On the higher side, the targets of 320 can be seen, and then 360.

JK Paper: Buy
JK Paper is the leading player in office papers, coated papers and packaging boards. It is one of the most respected paper companies today.

On the weekly chart, the trend is bullish and is trading at a near 52-week high. Technically, it has formed an Ascending Triangle pattern.

Based on the pattern, buying is suggested from this range of 420-430 and the target price is placed at Rs 480 and then 525 level. Our bullish view will be valid as long it sustains above the 390 level on a closing basis.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)