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Last Updated : Aug 11, 2020 07:57 AM IST | Source: Moneycontrol.com

Trade Spotlight: Cipla, Divi’s Laboratories, & GMM Pfaudler in focus

More than 200 stocks on the BSE hit their fresh 52-week high that includes names like Cipla, Divi’s Laboratories, GMM Pfaudler were among the top stocks.

 
 
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Indian market witnessed profit-taking on August 10 as Nifty failed to hold on 113,00 levels on a closing basis. Experts feel that investors should remain cautious and watch out for 11,300-11,350 as crucial resistance levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 141 points to 38,182 while the Nifty50 rose 56 points to close at 11,270.

The market would also react to the Supreme Court hearing on Tuesday as well as global cues. US-China trade tensions, as well as crude oil prices, could cap the upside for Indian equity markets.

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The broader markets continued its outperformance as both BSE Midcap and Smallcap ended higher by 1.5 percent each. On the sector front, except Oil & Gas which ended flat, all the other indices ended in green wherein Healthcare, Capital Goods, and Realty were the top gainers.

“Markets would react to the SC hearing on AGR dues and stocks especially from telecom and banking pack will remain in limelight. And since we’re closely following the global markets, US-China trade tension, currency and crude oil movement would also be actively tracked,” Ajit Mishra, VP - Research, Religare Broking Ltd told Moneycontrol.

“We maintain our positive yet cautious stance and suggest traders prefer hedged bets as volatility is here to stay. A decisive breakout above 11,350 in Nifty would again turn the bias in the favour of bulls,” he said.

More than 200 stocks on the BSE hit their fresh 52-week high that includes names like Cipla, Divi’s Laboratories, GMM Pfaudler were among the top stocks.

We have collated views of an expert on what investors should do when the market resumes trading on 11 August:

Expert:  Vikas Jain, Senior Research Analyst at Reliance Securities

Cipla: Hold| Target: Rs 900

The stock has given a breakout from its monthly channel near Rs 700 levels and entered into an unchartered area crossing its all-time high of Rs 753 levels.

We believe that the current up move will extend for higher moves near to Rs 900 mark and any decline near to the previous high of Rs 750 will act as a support.

Divis Laboratories: Book Profits| Avoid fresh longs

Divis Laboratories is one of the strong outperformers in the Pharma sector and witnessed a sharp up move from its 200-Day average support over the last month.

We believe after a rapid move, we recommend to book profits at current levels and wait for some decline near to Rs 2,720 levels to fill the gap levels.

RSI is trading at 87 levels and one should avoid fresh longs, being a high beta profit booking will be equally sharp.

GMM Pfaudler: Hold | Trail Stop loss to Rs 4,650

The stock continues to scale new all-time highs as it holds on to its short-term averages and one should trail the stops to its previous high of Rs 4,650 levels.

The midcap and smallcap indices continue to look good as it crossed its 200-Day average and the stock trading at an all-time high. We recommend trailing the stop loss for the stock.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 11, 2020 07:57 am
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