Buy, Sell or Hold: What should investors do with GMDC, Adani Power and Elgi Equipment stocks?

Indian market closed in the red for the sixth consecutive day in a row on Wednesday.

The S&P BSE Sensex fell over 60 points while the Nifty50 managed to hold on to 17050 levels. Source: PTI

Indian market closed in the red for the sixth consecutive day in a row on Wednesday. The S&P BSE Sensex fell over 60 points while the Nifty50 managed to hold on to 17050 levels.

Sectorally, buying was seen in realty, consumer durables, utilities and power stocks while selling was seen in energy, capital goods, and auto stocks.

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Stocks that were in focus include GMDC which closed with gains of over 8 per cent, Elgi Equipment also rose over 8 per cent, and Adani Power closed with gains of over 4 per cent on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

GMDC: Hold

The counter has a strong bullish setup where it is forming rising channel formation on a daily timeframe. It has retested its previous breakout level after hitting a fresh 52-week high.

On the upside, 152 is a susceptible area. If the stock starts trading above this level, then we can expect a run-up towards 180 in the near term. On the downside, Rs. 120 is major support at any correction.

Adani Power: Buy

The counter has witnessed an astute U-shape rally on the daily chart and formed a base around Rs.100 which is placed at the 200-Days SMA.

The overall structure is very bullish as it trades above its all-important moving averages. The pattern suggests an immediate target of Rs140, while it has the potential to move further upside. On the downside, Rs. 100 will act as an immediate support level.

Elgi Equipment: Buy

The counter is forming rising channel formation on the daily timeframe with a strong bullish setup. It has retested its previous breakout level after hitting a fresh 52-week high.

On the upside, 450 is an immediate resistance area; above this, we can expect a run-up towards 500+ levels in the near term. On the downside, Rs. 300 is major support at any correction.

(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.)

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