Nilesh Jain, Head Derivatives and Technical Research at Centrum Broking Ltd, has provided detailed investment strategies for four prominent Indian stocks: YES Bank Ltd, Bharat Electronics Ltd (BEL), Larsen & Toubro Ltd (L&T), and Inox Wind Ltd. His recommendations offer guidance for investors considering their positions in these companies.
YES Bank: Consider Exiting on Pullbacks
For investors holding YES Bank shares for the long term, Jain suggests a 'sell on rise' strategy, advising a potential shift to other banking stocks. He noted that YES Bank has significantly underperformed the market over the past six years, trading around Rs 20 compared to Rs 60 during the COVID-19 period. Strong resistance is observed between Rs 25-30, while Rs 15 acts as a robust support level.
Jain does not anticipate the stock returning to Rs 60-65 levels, describing its overall structure as sideways to weak. Any pullback towards Rs 25-30 should be viewed as an exit opportunity. While a sideways movement might persist, he recommends a stop loss at Rs 17 if investors choose to retain their positions.
Inox Wind: Wait for Lower Levels to Average
Inox Wind has been in a clear downtrend since September 2024, falling from Rs 250. Jain highlighted the formation of lower tops and lower bottoms, indicating a weak short-to-medium-term outlook. Recent pullbacks have been met with selling pressure at the 100-day moving average resistance.
He expects the selling pressure to continue, potentially pushing the stock towards Rs 90-85 levels. Existing investors looking to average their share price should wait for further downside. While a gradual uptick might be seen over a two-to-three-year horizon, the short and medium-term outlook remains weak. Jain advises against rushing into averaging until a clear base formation is observed.
Larsen & Toubro (L&T): Stay Invested with Targets Up to Rs 5,000
L&T has shown a strong rebound, moving from approximately Rs 3,400 to Rs 4,100. Jain maintains a positive outlook for the stock from a one-year perspective, citing recent positive developments. He advises investors to stay put, setting a trailing stop loss at Rs 3,500 for potential targets of Rs 4,500-5,000.
However, he cautioned investors to monitor geopolitical tensions, particularly in West Asia, given L&T's significant exposure to the region. Positive developments on this front could further influence the stock favorably.
Bharat Electronics (BEL): Exit on Pullback Due to Negative Trend
BEL has experienced selling pressure after reaching multiple tops around Rs 465. The short-term structure for the stock has turned negative. Jain suggests using any pullback towards Rs 440-445 as an opportunity to exit the position.
An important support level is identified at the 200-day moving average of Rs 412. Jain recommends setting a stop loss at Rs 412 and exiting if the stock was acquired purely for trading purposes.
Disclaimer: This report 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.