NSDL, CDSL, Olectra, Dixon Tech & JK Paper: What Centrum's Nilesh Jain says on these 5 stocks

Nilesh Jain, Assistant Vice-President (Derivative and Technical Research) at Centrum Broking, on Monday shared his views on select stocks including NSDL, CDSL, Olectra, Dixon Technologies and JK Paper.

On Olectra, Jain said the counter has already moved closer to the earlier target but still looks positive. “We have recommended to our client last week. It has almost reached our target but still we are optimistic, we are positive on this particular counter. Rs 1,800 plus kind of levels can be seen. You should keep a trading stop loss of Rs 1,620–1,600. If it falls in the range of Rs 1,640–1,660, that would be a good entry point,” the market expert told Business Today.

Speaking on Central Depository Services (India) Ltd (CDSL) and newly listed National Securities Depository Ltd (NSDL), he said, “It’s a tough call for me because if you see CDSL, it’s already a listed entity for a long time and we have enough data. NSDL is a recent listing and I don’t have enough data to comment.”

“CDSL looks strong, and one should have this particular counter in the portfolio. We see a lot of volatility in this counter. So, the ideal strategy should be to buy in a staggered manner or in multiple branches and divide equal amount in both NSDL and CDSL. That can be a good strategy to play,” he added.

From a technical perspective, Jain said CDSL has potential to move towards Rs 2,500–3,000 in the short to medium term. “As of now, purely from a technical point of view, the Rs 1,250–1,300 zone is a very strong support. So that should be your stop loss and Rs 2,000–2,500 can be seen in next 6 to 8 months,” he mentioned.

On Dixon Technologies (India) Ltd, the expert said the stock looks attractive at current levels. “One can consider buying the stock now as the stock was in consolidation. It has broken out from its Rs 17,000 barrier and looks like it is heading towards Rs 18,000, but conservative targets would be Rs 17,500–17,600 and the next target could be Rs 18,000 from a position perspective.”

For JK Paper, Jain advised caution for fresh investors. “After today’s spurt, it is not advisable to chase this counter. If somebody is already holding JK Paper, then one should stay put because the stock is trading well above long-term and short-term moving averages. The structure looks strong and Rs 420–440 levels can be seen on the upside with the stop loss below Rs 380. Long positions can be held. Fresh buying should only be done on declines. That said, JK Paper continues to remain our preferred bet in the select space,” he stated.