Indian market witnessed a breakout on Tuesday but Nifty failed to close above 11,400 levels. The S&P BSE Sensex rallied by nearly 500 points.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 477 points to 38,528 while the Nifty50 closed with gains of 138 points to 11,385.
Sectorally, the action was seen in realty, banks, finance, consumer durables, and metals while mild profit-taking was visible in the healthcare space.
Experts are of the view that the momentum is likely to continue and investors should go long on the index, even on dips, for a target of 11,500, and a stop can be placed below 11,250-11,200 levels.
We have collated views of an expert on stocks that were in focus on Tuesday, and how can one trade on August 19:
Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
This counter appears to have embarked on a medium-term uptrend from the recent lows of Rs 48 registered in the first week of August.
Moreover, in Tuesday’s session, it appears to have registered a fresh breakout after a minor pause in preceding two sessions with indecisive formations around its 200-Day simple moving average, whose value is placed around Rs 63 levels.
Hence, as long as it sustains above the said long-term average, then the initial target of Rs 75 can be expected. But, once it stabilises around the logical resistance, then a higher target of 87 can’t be ruled out.
For time being, traders are advised to hold for an initial target of Rs 75 with a stop below Rs 62 on a closing basis.
However, considering the vertical up move from the lows of Rs 48 in just seven sessions, fresh buying shall be considered only on dip preferably between Rs 65–63.
This counter appears to have embarked on a long-term uptrend from the panic lows of Rs 46 registered last March and in Tuesday’s trading session, it seems to have got a fresh impetus with a fresh breakout on the short-term charts as it emerged out of its 7-day old consolidation.
Hence, as long as it sustains above Rs 150 levels it can easily head to test its lifetime highs of Rs 195 registered in September 2018.Considering strong uptrend witnessed in this counter, traders are advised to adopt a two-pronged strategy of buying now and on dip preferably in the zone of Rs 160 – 155 levels with a stop below Rs 150 on a closing basis and look for an initial target of Rs 195.
Although this counter is trading at a lifetime high, it appears to be moving in a 46-Day old ascending channel, on log scale, and currently seems to be negotiating resistance with the supply line of the said channel.
Hence, unless it registers a fresh breakout with a sustainable close above Rs 1,850, further up move remains somewhat uncertain.
On such a breakout a higher target of Rs 1,990 can be expected. Hence, positional traders shall hold with a stop below Rs 1,776 on a closing basis whereas fresh buying shall be considered only on a close above Rs 1,850.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.