Big Movers on D-St: What should investors do with MRPL, ICICI Lombard and GMM Pfaudler?

Indian market closed in the red for the fourth consecutive day in a row on Wednesday after the Reserve Bank of India (RBI) hiked the policy rate on expected lines but sharply raised the inflation forecast for the current fiscal.

The S&P BSE Sensex fell more than 200 points while the Nifty50 closed below 16,400 levels.

Sectorally, buying was seen in realty, metals, IT, and auto stocks while selling pressure was seen in telecom, FMCG, energy, oil & gas, and power stocks.

Stocks which were in focus include names like MRPL which rose nearly 9 per cent, ICICI Lombard fell over 4 per cent, and GMM Pfaudler was down by nearly 2 per cent on Wednesday.

Here's what Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, recommends investors should do with these stocks when the market resumes trading today:

MRPL: Buy
Mangalore Refinery and Petrochemicals Limited is engaged in the business of refinery and manufacturing of refined petroleum products. The stock has risen to its highest level since 2018.

Because of persistent concerns about the supply of refined products and the switch from expensive gas to oil, the SG complex gross refining margin (GRM) has risen to a multi-year high, which is projected to favor MRPL and lead to good profitability in the future quarters.

In the last two months, the stock has doubled in value. Technically, the stock is in a strong uptrend (CMP Rs 124), therefore investors can keep their current positions with a tight stop loss of Rs 115 and a target price of Rs 140.

ICICI Lombard: Buy
ICICI Lombard General Insurance is a non-life insurer located in India. Its stock is now trading around its 52-week low of Rs 1,110 amid increased claims combined with sluggish corporate growth.

ICICIGI has an overall market share of 8.1 per cent and a 12.9 per cent market share in the private general insurance area.

As of FY22, motor insurance continues to be the major contributor to its premium, accounting for 46 per cent of the total.

Technically, the stock is in a strong bear trend, but as the dust settles, investors can buy around Rs 1,080 with a stop loss of Rs 1,020 for a target price of Rs 1,200 in the short-term.

GMM Pfaudler: Buy
GMM Pfaudler Limited manufactures glass-lined equipment, storage vessels and alloy steel equipment.

The stock is now trading at a PE of 70.63, compared to a sector PE of 44.47 and a PB of 11.32, indicating that the stock has little upward potential.

Technical analysis shows the stock can be bought around Rs 3,800 with a stop loss at Rs 3,400 for a target price of Rs 4,300.

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