Trade Spotlight | What should investors do with SRF, India Cements, Birlasoft, and Motherson Sumi Systems now

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

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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); glbbid=v.id; } }); } }); } else { AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function commonPopRHS(e) { /*var t = ($ (window).height() – $ (“#” + e).height()) / 2 + $ (window).scrollTop(); var n = ($ (window).width() – $ (“#” + e).width()) / 2 + $ (window).scrollLeft(); $ (“#” + e).css({ position: “absolute”, top: t, left: n }); $ (“#lightbox_cb,#” + e).fadeIn(300); $ (“#lightbox_cb”).remove(); $ (“body”).append(”); $ (“#lightbox_cb”).css({ filter: “alpha(opacity=80)” }).fadeIn()*/ $ (“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′); $ (“#LoginModal”).modal(); } function overlay(n) { document.getElementById(‘back’).style.width = document.body.clientWidth + “px”; document.getElementById(‘back’).style.height = document.body.clientHeight +”px”; document.getElementById(‘back’).style.display = ‘block’; jQuery.fn.center = function () { this.css(“position”,”absolute”); 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The market extended rally for second consecutive session on December 22, with the benchmark share indices rising 1 percent amid positive global cues and bargain hunting after recent correction. The BSE Sensex climbed 612 points to 56,931, and the Nifty50 jumped 185 points to 16,955.

The broader markets witnessed the maximum buying interest. The Nifty Midcap 100 and Smallcap 100 indices gained 1.55 percent 2.15 percent respectively. All sectors participated in the rally, with Bank, Auto, IT, Metal and Pharma indices being the prominent gainers with 1-2 percent upside.

Stocks that were in focus include SRF, India Cements, Motherson Sumi Systems, and Birlasoft which were amongst the top five gainers in the futures & options segment on Wednesday, reporting around 6 percent gains each.

SRF registered 6.13 percent rally to close at Rs 2,306, and India Cements spiked 5.72 percent to Rs 186.75, while Birlasoft jumped 5.6 percent to Rs 500.75, and Motherson Sumi Systems climbed 5.69 percent to Rs 215.55.

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

SRF

Given here is the daily chart of SRF, which depicts that the stock has confirmed a range breakout above Rs 2,250 level. The breakout has brought the price above ICHIMOKU cloud which indicates more strength.

In addition the daily RSI (relative strength index) has managed to break above 60 level which suggests strength.

Traders who are long in the stock should hold positions for an upside target of Rs 2,400 – Rs 2,500 whereas even investors should keep holding the stock since long term structure is very bullish. Support is placed at Rs 2,000 for short term.

India Cements

Since the bottom of year 2020, India Cements is trading in a rising channel as displayed on the chart. The recent corrective move forced the stock to retest its downward range and from there the stock has turned.

Thus the recent low of Rs 170 would be a crucial support for the traders. Those holding the stock should follow strict stop of Rs 170. On the upside, the stock has potential to go towards the upward range of the channel which is near to Rs 240 mark.

Birlasoft

The daily chart of Birlasoft clearly depicts that the rise has been quiet steep for the stock and has fresh investment is not advisable. However, investors who are having the stock in their portfolio should continue to hold since there is on signs of reversal too.

There is opportunity for traders at this point in time. They can go long with a stop loss of Rs 470 for 8-10 percent rise from here on because we have witnessed a range breakout along with decent volumes in recent session.

Motherson Sumi Systems

The stock is in uptrend but recently it has been consolidating. The weekly chart displays that the stock is stuck in a range of Rs 190 – 255 since 8 – 9 months. We are also witnessing a triple bottom formation at the lower end of this range which makes current price very lucrative for going long.

Traders can look for a buying opportunity but should exit below Rs 190. Meanwhile investors should continue to hold the stock since above Rs 255 the stock would attract strong buying interest.

Disclaimer: The views and investment tips expressed by investment 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.