Trade Spotlight: What should be the strategy of investors in SBI Life, BHEL and BPCL now

On the basis of good global cues, Indian markets closed with a gain of 1 per cent on 9 March. The Sensex saw an increase of around 600 points, while the Nifty also closed around 15100. Taking a look at different sectors, on Tuesday, there was a strong action in banks, IT, FMCG and consumer durables. On the other hand, there was profit booking in metal, oil and gas, public sector companies.

SBI Life Insurance saw a strong growth of 5% in Tuesday’s business. At the same time BHEL set a new high of 52 weeks while BPCL saw a decline of 5%.

Let us now know what is the opinion of Mazhar Mohammad of on the strategy of investing in these stocks.

SBI Life Insurance: Book profits

However, the stock has seen a breakout from its multiweek trading range 954–838. However, the stock is still expected to go up. Its life time high is Rs 1030. This is also its critical registration level, given which there is a suggestion of profit booking in this stock. In the near term, this stock will have to stay above the level of Rs 954. If it does not succeed in this, then the stock may see a decline. Also keep in mind that if this share is corrected at the level of Rs 950, then there will be a good opportunity to invest in it from the medium-term perspective.

BPCL: Get Out

From a technical perspective, this stock has not been able to cross its important registrations of Rs 482 on the Weekly Chart. This situation is clearly visible from the correction on March 5. If this weakness persists in the stock, then we can see a level of up to Rs 400 in it. In such a situation, we advise to exit the investors in this stock.

BHEL: Stay tuned

This counter, once bluechipped, was seen outside the curtain since 2007. But now it has once again come in the lime light. From a technical point of view, in order to move towards the level of Rs 62, the stock has to maintain a level of Rs 57 at the closing level. There is a big registration for this on the long-term chart around Rs 62. On the other hand, if this stock slips below Rs 53, then this weakness may increase to Rs 49 and then the sideways consolidation may be seen in the stock. Since the possibility of upsides in this stock is now a bit limited, investors are advised to either book profits at the current level in the stock or hold a stoploss below Rs 53.

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