Indian market reclaimed crucial resistance levels on December 1 thanks to better-than-expected GDP data for the September quarter and positive global cues.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 505 points to 44,655 while the Nifty50 closed with gains of 140 points at 13,109.
Sectorally, the action was seen in sectors like realty, telecom, IT, oil & gas, metals, healthcare, as well as energy stocks.
GAIL India, which was the top Nifty gainer rose nearly 8 percent, Affle India rallied by about 5 percent and Motherson Sumi, which hit a 52-week high, closed with gains of more than 6 percent.
We have collated views of experts on what investors should do when the market resumes trading on 3 December:
Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
GAIL India: Buy on dips| Target Rs 132
This counter appeared to have registered a breakout by closing above its interim top place around Rs 107 levels with a Price and Volume breakout on both fronts.
With this breakout, it seems to have embarked on some sort of medium-term uptrend whose target remains around 132 levels.
However, in between, there can be some hiccup around Rs 118 levels, due to profit-booking, especially if it continues to rally without a dip in the next one or two trading sessions.
For time being fresh buyers are advised to adopt a two-pronged strategy of buying at the market and adding further on a dip into the zone of Rs 108 – 104 levels with a stop below Rs 103 levels on a closing basis and look for a target of Rs 132.
Affle India: Avoid fresh buying due to high risk
Though, its vertical up move remains the biggest concern for this counter as its price multiplied itself by almost 4 times from March 2020 lows of Rs 899, its recent consolidation breakout on daily charts is pointing towards a bigger target of around Rs 3800 levels.
Moreover, the gap-up opening of the last trading session from a minor three-day consolidation is also hinting that this counter resumed its up move.
Though we advise traders to avoid fresh buying due to high risk and its vulnerability to profit booking anytime, exiting investors can hold with a stop below Rs 3418 levels on a closing basis and should look for a target of Rs 3850.
Motherson Sumi: Consider fresh buying at current levels
This counter appears to have conquered its resistance present around Rs 151 levels where it distributed for a period of around 4-weeks in January 2020 before tumbling down to 48 due to COVID-induced correction.
Hence, sustaining above Rs 146 levels this counter should eventually head towards Rs 176 levels. Therefore, one can hold and even consider fresh buying at current levels with a stop below Rs 146 on a closing basis and look for a target of Rs 175.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.