Experts said it is now advisable to look at stocks which are displaying signs of a breakout.
A day of consolidation for Indian markets but no love lost for the bulls as benchmark indices closed above crucial support levels. The Nifty50 registered a higher intraday low of 11,314 compared to low of 11,276 on March 13 suggests that bulls remained in charge.
The index has already rallied by over 500 points so far in March and some consolidation cannot be ruled out at least in the near term. The larger trend, though, still remains on the upside.
Both Sensex and Nifty closed off day's high but still managed to close in green compared to their respective previous day’s closing level. The NiftyBank hit yet another record high.
The final tally on D-Street – the S&P BSE Sensex closed 2.7 points higher at 37,754 while Nifty50 gained 1.55 points to end at 11,343 on March 14.
After a strong rally seen in the last three trading sessions, participants were in the profit-taking mood from the beginning which capped the upside, but the trend still remains to be on the upside, suggest experts. However, it is now advisable to look at stocks which are displaying signs of a breakout, they said.
"After witnessing two-day of vertical climb, we were witnessing resistance near 11400 levels. Nevertheless, looking at the momentum and VIX, once we move above 11400-11420, Nifty50 is like to surpass the previous record high and touch 11800. More than a top, it is just a halt in the rally," Meghana V Malkan, co-founder, Malkansview told Moneycontrol.
Investors should now look at specific stocks. Meghana said she likes Wipro as well as Jindal Steel, which have witnessed a break and are poised to move higher in the near-term, with a target of Rs 285 and Rs 195 respectively.
Stocks in news
Essel Propack jumped nearly 7 percent after the company redeemed commercial papers on maturity dates.
Tata Motors shares fell a little over 1 percent after subsidiary JLR recalled some cars due to excessive CO2 emissions.
Lenders of Reliance Communications sold about 4.34 percent stake of promoters in the telecom firm and as a result shares of Anil Dhirubhai Ambani Group (ADAG) companies came under pressure on March 14. The share price of Reliance Power fell 6 percent while that of Reliance Communications closed lower by 5 percent.
Reliance Infra ended the day 3 percent lower while Reliance Capital tanked 8 percent. Reliance Nippon shed 4 percent and Reliance Naval ended the day close to 2 percent on the negative side.
Shares of Deep Industries rose 9 percent as the company received two orders worth Rs 183.50 crore from ONGC.
The share price of eClerx Services gained 4 percent as the board approved the proposal for buyback of fully paid-up equity shares for an aggregate amount not exceeding Rs 262 crore.
European markets are trading on Thursday amid confusion over Brexit issue. CAC gained 0.70 percent at 5,343.35, DAX was up 0.43 percent at 11,623.53 and FTSE rose 0.40 percent at 7,188.51.
Asian markets ended mixed on the back of China’s industrial output growth fell to 17-year low. Nikkei ended flat at 21,287.02, while Shanghai Composite shed 1.2 percent to 2,990.68.Kospi ended higher at 2,155.68 and Hang Seng was up 0.15 percent 28,851.39.