Trade Spotlight: What should investors do with PNB Housing, Solar Industries & Redington?

Here’s what Vikas Jain of Reliance Securities recommends investors should do with these stocks when the market resumes trading today

Nifty50 hit fresh highs for the second consecutive day in a row on Monday. Benchmark indices closed with gains of about 1 percent while the broader market indices underperformed.

Sectorally, the rally was seen in energy, metal, telecom, and oil & gas stocks while some profit-taking was seen in IT and auto space.

Stocks that were in focus include PNB Housing which rallied 20 percent to hit a fresh 52-week high, Solar Industries (up 11 percent), and Redington India (up nearly 20 percent). All three stocks hit a fresh 52-week high on Monday.

Here’s what Vikas Jain, Senior Research Analyst, Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Solar Industries: HOLD | Target: 1700

The stock has given a multi-year breakout and scaled to an all-time high with strong volumes - one of the highest in the last 10 years post its quarterly results.

We believe that the up move would get extended for a higher target of Rs 1700 from current levels, and any decline or retracement to fill the gap area of Rs 1340-1365 levels should be used as an opportunity to add longs.

PNB Housing: HOLD | Target: 700

The stock crossed its 100-week average after a gap of three years with positive news flow and the price up move confirms the long-term uptrend.

The intermediate high of Rs 575 could act as a minor resistance and a crossover of the same would signal a higher target in the coming quarters.

On the downside, the stock has strong support near the Rs 475 levels, and its previous top would now become support now.

Redington: Book Profit

The stock has moved up by 40 percent over the last two days, which indicates that there could be some moderation from the current levels.