On July 9, Centrum Finverse analyst Nilesh Jain provided detailed trading strategies for several prominent Indian stocks, including Tata Power, Adani Power, Polycab, and Berger Paints, during a BTTV segment. Jain addressed investor queries, outlining both near-term cautions and long-term opportunities across these sectors.
Tata Power & Adani Power: Long-Term Strength Despite Short-Term Concerns
For investors holding frontline power sector stocks like Tata Power and Adani Power, Jain acknowledged a recent weakening in the short-term setup. This sentiment is partly influenced by concerns over fresh charges on solar consumers in Maharashtra, which could weigh on renewable energy counters.
However, Jain emphasized that the broader outlook for power stocks remains constructive over a one-year-plus horizon. He described the current phase as an "opportunity in a strong uptrend," suggesting that while the sector digests recent sharp gains, its fundamental strength persists.
Polycab: Maintain Gains with Trailing Stop-Loss
Investors in Polycab, many of whom are sitting on significant gains, do not necessarily need to rush for an exit. Jain noted that some investors entered Polycab at much lower levels, seeing their positions nearly double. Despite this, he flagged near-term caution due to a slight correction from upper levels, making risk management critical even for long-term holders.
Jain advised maintaining a trailing stop-loss at Rs 8,700. As long as this level holds, he believes Polycab could experience a fresh pullback, allowing the uptrend to resume. He reiterated that investors with a "one year plus" perspective should remain invested, reinforcing the view that the broader structure remains supportive despite intermittent corrections.
Berger Paints: Exit on Relief Rallies
The outlook for Berger Paints investors is more tempered in the near term. Technical signals suggest that any upside for the stock would likely be limited to a relief rally rather than the beginning of a sustained recovery. Jain highlighted the fragile outlook for paint stocks, even with crude prices cooling off from recent peaks.
Jain advised investors to utilize any pullback as an opportunity to exit. He identified Rs 480 as a "very strong support" level, which should be treated as a stop-loss. On the upside, he sees potential for a pullback towards Rs 520-Rs 540. However, this advice is tactical, not bullish. "If you get the levels of 540 or maybe above that, then use that pullback to exit," he stated. With volatility expected to persist, the strategy is clear: protect downside at Rs 480, watch for a rebound to Rs 520-Rs 540, and treat strength as an exit window rather than a fresh entry signal.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.