Trade Spotlight: What should investors do with Tata Investment, Stove Kraft, Triveni Turbine & Gujarat Fluorochemicals now?

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The market corrected for the fourth consecutive session on October 1, dragged largely by banking & financials and technology stocks. The index fell 360 points to close below 59,000, while the Nifty50 slipped below 17,600 with a loss of 86 points on the first day of the October series.

The broader markets fared better on October 1 as well as on during the week. The BSE Midcap index declined 0.11 percent and smallcap index gained 0.48 percent on October 1 and rose 0.12 percent and 0.7 percent for the week.

Stocks that were in focus included non-banking financial company Tata Investment Corporation, which hit a new high on October 1 before closing with 5.10 percent gains at Rs 1,436.65. Cooking appliances maker Stove Kraft also touched a new high of Rs 1,084 before closing at Rs 1,068.15 with 4.14 percent gains.

Steam turbines maker Triveni Turbine was also in focus, surging 9.06 percent to settle at Rs 173.90 after hitting a fresh high of Rs 178.50, and Gujarat Fluorochemicals, too, touched an all-time high of Rs 1,974 before finishing the Friday’s trade at Rs 1,952.10 with 2.13 percent gains.

Here’s what Mehul Kothari of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:

Tata Investment Corporation

The stock has been trading in a secular uptrend and corrections have been used by the bulls in the past. Recently, the stock has witnessed a consolidation breakout and is looking strong on technical charts.

The stock has a trend to consolidate and form a firm base before the next set of the rally and the same could be expected in the future as well.

Even on the technical parameter of price extension, the stock affirms the bullish trend. Investors can hold their long positions in the stock, while traders should wait for a decent risk-reward ratio for a fresh entry.

Stove Kraft

The stock is in the cycle of higher highs higher lows and is placed well above all its major exponential moving averages, indicating inherent strength in the counter. The stock tends to take support near the previous swing high and bounce forward to test the uncharted territory.

Same price action is expected in the counter as most technical parameters signal positive momentum.

Investors can keep holding their long positions unless there is a confirmation of a near-term top.

Gujarat Fluorochemicals

Fluorochem is in a secular uptrend and follows the higher highs higher bottoms formation uninterruptedly on all time frames. The stock is placed above all its major exponential moving averages on the daily chart affirming the inherent strength in the counter.

Hence looking at the price action and analysing trends, the stock looks lucrative from an investment perspective. Thus one can keep holding and even buy fresh for medium-term time frame.

Triveni Turbine

The stock recently breached its previous lifetime high to test an uncharted territory. The stock has seen accumulation in terms of trading volumes recently, indicating huge demand in the counter at lower levels.

The stock has consistently been trading above the mean of Bollinger band (20, 2) from the lows, suggesting all minor corrections being fully utilised by the bulls.

Even the fresh breakout has signalled strong potential in the counter in the near future. The stock has the potential to go towards Rs 200 in the coming months.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.