Buy, sell or hold: what should investors do with ITI, Sequent Scientific and Aptus Value Housing Finance?

Actions to watch: Extending the rally for the second day, the Indian market gained more than 0.5% in Monday’s first session. After opening at 16,151.40, the Nifty50 was seen attempting 16,200 as it touched the day’s high at 16,199.70 in early intraday trading on Monday. Similarly, the Sensex opened at 54,069.30 and gained over 400 points on its previous close to trade at 54,246.76 in early trading.

Support also came from the broader market, where Nifty Midcap and SmallCap rose almost 1% each, while all sector indexes rallied to open in the green on Monday.

Meanwhile, some stocks came into sharp focus on Friday. These stocks are the ones that moved back and forth based on developments in news and corporate actions on Friday. These stocks were ITI, Sequent Scientific and Aptus Value Housing Finance. ITI was trading down around 2%, Sequent Scientific was up 3% and Aptus Value Housing Finance was up around 1% in Monday’s intraday trading on BSE.

Here’s what Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities Ltd, suggests doing with these stocks.

ITI:

Over the past week, the stock has climbed more than 20%. In the short term, the meter has formed a strong price volume breakout pattern. The texture of the pattern suggests that the breakout action will continue in the near term if the stock successfully trades above the 112 level. For the trend following traders, 112 would be the key level, trading above from the same level, we can expect a continuation wave of the uptrend to 130-135. On the other hand, below 112, uptrends would be vulnerable.

Sequential scientist:

After a long correction, the stock finally took the support near 80 and reversed. After a strong reversal, the stock maintains a higher bottom formation. Last Friday, the stock climbed over 7% and it also formed a long bullish candle on the daily charts. Also, after a long run, it managed to trade above the 50-day SMA, a promising price volume activity close to the 50-day SMA (simple moving average), indicating a new uptrend by compared to current levels. For the trend following traders 104 would be the sacrosanct level, trading above the same level we can expect a continuation wave of the uptrend to 120-125.

Aptus Valuable Housing Financing:

After a promising rally, the stock is hovering between 265 and 290. The stock’s short-term texture is not directional, perhaps traders are waiting for a breakout on either side. For bulls, the 290 or 50 day SMA would be the important breakout level to watch. And if the stock manages to trade above the same value, we can expect a further uptrend towards 300-310. On the other hand, trading below 265, could further increase the weakness to 250-245.

(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)

Robert D. Coleman