Big Movers on D-St: What should investors do with Usha Martin, PNB Housing and Jindal Stainless?

Indian market closed in the green on Monday tracking positive global cues. The S&P BSE Sensex rose more than 300 points while Nifty50 closed just below 18200 levels.

Sectorally, buying was seen in metals, telecom, public sector, and realty while some selling was seen in consumer durables, healthcare, and power stocks.

Stocks that were in focus include names like Usha Martin which closed with gains of over 7%, PNB Housing which rallied more than 7%, and Jindal Stainless which closed with gains of nearly 6% on Monday.

Here's what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities recommends investors should do with these stocks when the market resumes trading today:

Usha Martin – Book Profit
The stock witnessed a breakout from a symmetrical triangle pattern in late-Dec’22 and extended gain quite rapidly, which took it from Rs 150 to its new lifetime high of Rs 199.

Currently, the stock is near to its breakout target point of Rs 210. The key technical indicators tested the overbought zone on the short-term timeframe chart and may reverse.

In the past, the reversal in the key technical indicators from such higher levels has triggered a short-term decline for the stock.

PNB Housing – Buy on dips
Continuing its prior daily rising trend, the stock rose to a 52-week high of Rs 579. The stock is positively poised above its key moving averages on medium-term as well as short-term timeframe charts.

The key technical indicators are in favor of the bull. We believe the stock will continue its undergoing positive momentum, which could lead it towards Rs 675.

In case of any decline, the stock will find support around its 20-day and 50-day EMAs, which are currently placed at Rs 492 and Rs 458, respectively.

Jindal Stainless – Hold
The stock extended gain post surpassing its medium-term supply zone (Rs 220-230) and registered a new lifetime high of Rs 255. The key technical indicators are positively poised on medium-term as well as short-term timeframe charts.

As per the change in polarity principle, its prior supply zone will work as a demand zone. The stock may continue its northward journey by the time it stays firm above its demand zone of Rs 230-220. In case the stock violates its demand zone, a short-term decline cannot be ruled out.

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