Big Movers on D-St: What should investors do with Godfrey Phillips, PFC and JSPL?

Indian market snapped a three-day losing streak to close in the green on Monday tracking positive global cues.

The S&P BSE Sensex rose more than 800 points while the Nifty50 reclaimed 18100 levels.

Sectorally, buying was seen in IT, power, utilities, metal and energy stocks while some selling was seen in consumer durables.

Stocks that were in focus include names like Godfrey Phillips which was up more than 6%, Power Finance Corporation which gained over 1%, and JSPL which hit a fresh 52-week high and closed with gains of nearly 2% on Monday.

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

Godfrey Phillips – Book profit
In November 22, the stock witnessed a breakout from a decade-old range of oscillation (Rs 700-1,400) and extended gain subsequently. This took the stock near to its breakout target of Rs 2,100 in a very short span.

Though the key technical indicators are in favor of the bulls on short-term timeframe chart, its medium-term indicators tested the overbought zone and may reverse down. Hence, profit booking cannot be ruled out.

PFC – Book Profit
Continuing its prior monthly rising trend, the stock rose to a 5½ year high of Rs 162. Currently, the stock is trading near to its long-term supply zone of Rs 165-170. In the past, the stock reversed after testing that zone.

The key technical indicators tested the overbought zone on a medium-term timeframe chart. In case history repeats itself, short-term decline cannot be ruled out.

Jindal Steel and Power – Book profit
The stock doubled from its lowest level of Jun’22 (Rs 304) and rose to 10-year high of Rs 607. Currently, the stock is trading tad below its prior point of polarity (Rs 620).

In the past, the stock reversed after a short-term up-move and witnessed profit booking. The key technical indicators witnessed bearish divergence on short-term timeframe charts. Hence, profit booking advised at current juncture.

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