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Trade Spotlight | What should you do with Smartlink Holdings, HCL Tech, Mindteck, and L&T Finance... - Moneycontrol.com

Here's what Rajesh Palviya of Axis Securities, recommends investors should do with these stocks when the market resumes trading today

Sunil Shankar Matkar

December 27, 2021 / 07:28 AM IST

The market took a breather after a three-day rally and closed with moderate losses on December 24 as the selling pressure was seen across sectors, barring IT. The Nifty50 managed to hold on to the crucial 17,000 mark, closing nearly 70 points down at 17,004, while the BSE Sensex fell nearly 200 points to 57,124.

The broader markets have seen more correction than the benchmark indices as the Nifty Midcap 100 and Smallcap 100 indices declined 1 percent and 0.5 percent.

Stocks that were in focus include Smartlink Holdings which was locked in the 20 percent upper circuit at Rs 142.65 with a market capitalisation of Rs 142 crore, and Mindteck was also frozen at 5 percent upper circuit, closing at Rs 167.45, with a market capitalisation of Rs 430 crore.

HCL Technologies was the biggest gainer in the Nifty50, rising 3.08 percent to Rs 1,265.20, with a market cap of Rs 3.43 lakh crore, however, LT Finance Holdings plunged 6.9 percent to Rs 76.90, with a market cap of Rs 19,024 crore.

Here's what Rajesh Palviya of Axis Securities, recommends investors should do with these stocks when the market resumes trading today:

Smartlink Holdings

The stock has decisively broken out its 14-year 'multiple resistance' zone of Rs 130-132 on a weekly closing basis, indicating major breakout. This is accompanied by huge volumes which implies increased participation at breakout zones.

Daily, weekly band Bollinger buy signals increased the momentum. The daily, weekly and monthly strength indicator RSI (relative strength index) is in a bullish mode along with positive crossover which supports rising strength. This buying momentum was observed from its 200-day SMA (Rs 105) which remains a crucial support zone.

The stock is well placed above its 20, 50 and 100-day SMA which reconfirms short term as well as medium term bullish sentiments. Investors should buy, hold and accumulate this stock with an expected upside of Rs 165-180, with downside support zone of Rs 120-105 levels.

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HCL Technologies

On the weekly as well as monthly chart, the stock is in strong uptrend forming a series of higher tops and bottoms signalling sustained up trend. On the daily chart, the stock has formed an 'inverse Head Shoulder' - a short-term trend reversal pattern and the same has been confirmed around Rs 1,200 levels.

The stock is well placed above its 20, 50 and 100 day SMA which reconfirms short term as well as medium term bullish sentiments.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,330-1,360, with downside support zone of Rs 1,200-1,190 levels.

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Mindteck

The stock is in strong uptrend across all the time frames as it forms a series of higher tops and bottoms. With the current week's high, the stock has registered a new high at Rs 182 levels, indicating strong uptrend. The stock is well placed above its 20, 50 and 100 day SMA which reconfirms short term as well as medium term bullish sentiments.

The daily and weekly strength indicator RSI is in bullish mode along with positive crossover which signals rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 200-215 levels, with downside support zone of Rs 150-130 levels.

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LT Finance Holdings

On the short and medium term chart, the stock is trending down forming a series of lower tops and bottoms. It is sustaining below its 20, 50, 100 and 200-day SMA which signals bearish sentiments.

The strength indicator RSI is in a bearish mode across all the time frames indicating further weakness. Hence, any short-term pullback rally towards Rs 80-90 levels remains as an exit opportunity for traders. On the downside Rs 65-60 may act as a crucial support zone.

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