Experts are of the view that any dip towards 10,800 is likely to get bought into and on the upside, resistance is seen around 11,250-11,300 levels.
After four consecutive days of decline, bulls regained control of the D-Street on August 4 pushing the benchmark indices above crucial resistance levels. The S&P BSE Sensex rallied by more than 700 points while the Nifty50 reclaimed 11,000 levels.
The Nifty50 also closed just a shade below 11,100. Experts are of the view that any dip towards 10,800 is likely to get bought into and on the upside, resistance is seen around 11,250-11,300 levels.
HDFC Bank closed with gains of over 4 percent on Tuesday after the Reserve Bank of India approved the appointment of Sashidhar Jagdishan as Managing Director & CEO of the bank for a period of 3 years. He will take the helm of the private sector lender on October 27.
Other stocks which were in focus in the Nifty50 were ZEE Entertainment which closed with gains of 6 percent, and Exide Industries closed flat but saw a rise in volumes.
We have collated views of experts on what investors should do on August 5:
Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
At last Monday’s low of 993, this counter exactly retraced 50 percent of its rally from May lows of Rs 826 – 1,157. Interestingly, the said low of Rs 993 also coincides with 38.2 percent retracement of its entire rally from the panic low of Rs 738 witnessed in last March.
Hence, technically speaking the current reversal with a strong up move might have kicked in a short-term pullback rally which can extend up to Rs 1,124 provided recent low of Rs 993 holds.As the technical stop loss level is a bit far away, traders can adopt a two-pronged strategy of buying now and adding on dips to the zone of Rs 1,025 –1,014 levels and can look for a target of Rs 1,117. A stop loss suggested for this trade is a close below Rs 997.
This counter almost retraced 80 percent of its entire rally from the March panic lows of Rs 114–210 levels. Moreover, Tuesday’s price action is almost looking like a reversal in favour of bulls with relatively much higher volumes.Hence, if the stock trades above Rs 134 levels, the upside could extend towards Rs 167. Therefore, positional traders can buy into this counter with a stop below Rs 134 and look for a target of Rs 167.
This counter witnessed decent price gain in the early part of the last session, on huge volume which is much higher than the last 5-day average volume.
However, it failed to retain the intraday gains which left a long upper shadow on the chart which can be construed as a weak pullback attempt.
Hence, to regain momentum and register a sustainable multi-day up move this counter needs a close above Rs 160. On such a close a target of Rs 175 can be expected.
Traders who are already on the long side shall hold with a stop below Rs 154 on a closing basis, whereas fresh buying can be considered only on a close above Rs 160.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.