Big Movers on D-St: What should investors do with KEI Industries, Ipca Laboratories and GSFC?

Sectorally, buying was seen in realty, capital goods, telecom, and power stocks while selling was visible in metals, oil & gas, energy, and healthcare stocks.

Stocks that were in focus include names like KEI Industries which was up nearly 6%, Ipca Laboratories which fell more than 5% and GSFC which closed with gains of 20% on Wednesday.

Here’s what Akhilesh Jat, Category Manager – Equity Research, CapitalVia Global Research recommends investors should do with these stocks when the market resumes trading today:

Ipca Laboratories: Avoid
Investors have reacted negatively to IPCA Laboratories’ purchase of a 33% share in Unichem Laboratories (Unichem) for Rs 1,034 crore, sending the company’s stock down more than 16% to a 52-week low.

Technically, it has fallen below the psychological support level of Rs 700. Investors should wait for price stability because there has been a dramatic decline. It is better to avoid any new positions in it for the time being.

KEI Industries: Buy

Stock prices of KEI Industries surged as much as 5.78% intraday on Wednesday to surpass its previous all-time high. The positive momentum in stock prices came after the breakout of the prolonged consolidation of thirteen trading sessions on a strong bullish trend.

Breakout with the heavy volume suggests that there is more upside momentum in the stock prices in the upcoming sessions.

The next resistance level can Rs 2000 whereas Rs 1700 can act as a support level. Any correction near its support level can be a buying opportunity.

GSFC: Buy Above Resistance
The state government of Gujarat announced a new policy of mandatory dividends and bonus shares on Wednesday, and as a result, shares of seven listed state-run PSUs from Gujarat including GSFC saw a spike of more than 17%.

It also established standards for when stock splits and share buybacks should be implemented.

In the last 1 year, GSFC has been trading sideways to negative, but Wednesday’s movement has produced a strong breakout. Despite this, one should wait for some consolidation because the rise is abrupt. If it manages to break the Rs 155 level and sustain above it then we can expect the level of Rs.170 in the near future.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)