Buy, Sell or Hold: what should investors do with Manappuram Finance, ONGC and MHRIL?

The Indian market pared losses after correcting more than one and a half percent in morning trading to end with marginal reductions on Friday. The benchmarks Nifty 50 and Sensex ended down around 0.20% as they extended their weakness into the third day. The barometer indices are down 0.3% each this week. The week saw the market end in the red three times, as it closed with gains twice amid volatility.

The broader Nifty50 fell 0.18% to close above 15,750, while the Sensex fell more than 100 points or 0.21% to close near 52,900.

Benchmark outperformance, broader market indices Nifty midcap and smallcap gained around 0.5% each.

Nifty Oil & Gas ended with a cut of around 4% after the Department of Commerce announced additional excise duties on petroleum products. On the other hand, all the other Nifty sector indices rallied to settle in the green. The rally was led by FMCG, Realty and Pharma stocks.

Unfavorable signals from the domestic market led to a weak start due to weak rupiah and oil refinery sales as the government imposed an additional export duty on gasoline and diesel, it said. “Adding to the weakness, India’s industrial production growth slowed in June as high inflation continued to dampen demand,” the expert said.

Meanwhile, some stocks came into sharp focus on Friday. These stocks were Mannapuram Finance, ONGC and MHRIL. Manappuram Finance closed with a gain of nearly our percentage, ONGC was down more than 13% and MHRIL ended up 5.5% on Friday.

Here’s what Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities Ltd, suggests to do with the following actions once the market resumes trading on Monday

Finance Manappuram:

After a long correction, the stock formed a double bottom formation. After the formation of the reversal, the stock is consistently trading above the 85 support level, which is positive overall. Additionally, on the daily charts, it has formed a long bullish candle. For bulls, 85 would now be the key level to watch. above the same, the pullback rally should continue to 95-97. On the other hand, below 85 possible new sell rounds. Below 85, it could retest the 82-80 level.

CGSB:

Last Friday, the stock experienced a strong price correction, it corrected by more than 12%. Long bearish candle on the daily charts indicating further weakness from current levels. Currently, the stock is trading well below the 200, 50 and 20 day SMA (Simple Moving Average), which is largely negative. We believe that the weak formation is likely to continue in the near future. However, a quick rebound is possible if it manages to trade above 140. Above which, it could go back up to 143-146. On the other hand, below 140 the corrective wave should continue to 128-125.

MHRIL:

After a mid-term correction, the stock took support near the 200 level and reversed. after a promising reversal formation, it successfully broke through the 220 resistance. Last Friday, the stock rebounded more than 5% and managed to close above the 200-day SMA. Furthermore, on the weekly charts, it has also formed a long bullish candle that supports the continuation of the uptrend. For the trend following traders 215 would be the sacrosanct level, trading above the same level we can expect a continuation wave of the uptrend to 235-245.

Robert D. Coleman