Newgen Software share rally a dead cat bounce? Views on Kalyan Jewellers, Senco Gold, NLC India 

Market expert Pradip Halder on Friday said Newgen Software shares are witnessing a dead cat bounce and that traders should sell the stock on rise. In an exclusive interview to Business Today Television (BTTV), the founder and CEO at PHD Capital, suggested staying put on NLC India Ltd and Senco Gold Ltd. He sees further upside on Kalyan Jewellers India Ltd.

Replying to a query by a viewer Jatin Dave, who held 1,000 Newgen Software Technologies Ltd shares at Rs 486 apiece, Halder said Newgen Software has seen a few management changes, with a new CEO soon joining in, because of which the stock has seen some positive momentum. A similar development, was seen in shares of Bata India a couple of weeks ago, when the firm announced its new Managing Director and Chief Executive Officer.  
Halder said Newgen's performance was not up to the market in the past few quarters due to which the stock had witnessed selling pressure. He called the recent rise a case of dead cat bounce. After a sharp rise on Friday, hander said one should consider an exit and look for 'Sell on rise'.

On a query on NLC India Ltd, Halder said one can hold the stock with a stop loss placed at Rs 290 for an initial target of Rs 338, followed by a target of Rs 368-370, in the next one-two months.

On Senco Gold, Halder said the recent business update was healthy. He said the stock has potential to move to Rs 435-450 levels and, thus, suggested to stay put. He advised traders to keep a stop loss at Rs 322 level.

On Kalyan Jewellers India Ltd, Halder said if a stock is rallying 20-25 per cent in this uncertain market, one should not short such stocks. He said Kalyan Jewellers is still down over 50 per cent from its all time high and, thus, the ongoing move is normal after such a battering.

He said the stock needs to fall below Rs 450 to make any case for short position. Below the Rs 450 level, a move towards Rs 415 could be possible, he said. But looking at the chart setup, Halder said the stock could test levels of Rs 495-Rs 500 on the upside.