Bulls were back in action on October 26, taking the BSE Sensex to 61,350 levels and the Nifty50 to 18,268 levels with support from all sectors. Auto and Metal stocks were major gainers with more than 2 percent gains followed by FMCG and IT stocks, while the Bank Nifty ended at record closing high with moderate gains.
The BSE Sensex gained 383 points and the Nifty50 rose 143 points. The broader markets, too, turned stronger with Nifty Midcap 100 and Smallcap indices gaining 1.8 percent and 2.57 percent respectively. The volatility index, which measures the expected volatility in the market, also declined nearly 5 percent, which also supported the market.
Stocks that were in focus include Gujarat Alkalies and Chemicals which was locked in 10 percent upper circuit at Rs 724.75 and IDFC First Bank, which was the second largest gainer in the F&O segment, gained 7.09 percent to close at Rs 52.85.
Jindal Steel & Power was also in action, rising 4.80 percent to close at Rs 445.70, while Ramco Cements was the biggest gainer in the F&O segment, up 7.65 percent at Rs 1,014.85.
Here's what Mazhar Mohammad of chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
Gujarat Alkalies and Chemicals
This counter seems to have embarked on a pull back rally after retracing 50 percent of its last leg of swift up move from the lows of Rs 467 to Rs 846 levels as it registered a strong up move in the last session.
Hence, as long as this counter sustains above Rs 650 levels then one should retain a positive stance and should make use of the dips to buy and look for the target of Rs 790 with a stop loss below Rs 649.
IDFC First Bank
This counter seems to have witnessed a breakout from its 27-day old ascending triangle as it witnessed a decent price appreciation on the back of huge volumes.
Moreover this counter appears to be moving in some kind of descending channel for last 158 sessions. Hence, sustaining above Rs 49 levels initially it can be expected to head towards Rs 59 levels.
Traders who already hold this should continue to hold with a stop loss below Rs 49 while fresh buying should be considered on minor dips and look for a target of Rs 59.
Jindal Steel & Power
Strong price action of last session on the back of relatively higher volumes is hinting that this counter may be on a pull back mode. However, the larger trend for the last six months seems to be sideways as this counter is caught up in the corrective and consolidation phase.
Hence, sustaining below Rs 426 levels it can head to test the recent peak of Rs 472 levels. Hence, for time being existing investors are advised to hold for targets of Rs 467 but fresh trading opportunities may arise on dip towards Rs 435 to Rs 430 levels.
For the last 29 weeks, this counter seems to be consolidating in a larger band of Rs 1,130 – Rs 925 levels. As it bounced back from the lower end of such a consolidation zone on the back of huge volumes, eventually it can be expected to head towards the upper band.
However, considering around 10 percent up move of last session fresh buying should be considered only on dips but stop loss will remain below Rs 928. Positional traders who are holding this counter shall continue to do so and look for a target of Rs 1,090 levels.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.