Indian market rose for the fourth consecutive day in a row to a fresh 6-month high. The S&P BSE Sensex closed above 39,000 while the Nifty50 also reclaimed 11,500 levels on a closing basis which is a positive sign.
Let’s look at the final tally on D-Street on Wednesday – the S&P BSE Sensex rose 230 points to 39,073 while the Nifty50 rallied 77 points to close at 11,549.
Sectorally, the action was seen in Energy, Bankex, Auto, IT, and Realty stocks while profit booking was seen in stocks like telecom, capital goods, FMCG, and healthcare.
Stocks that were in focus include Hero MotoCorp which rose over 6 percent, Affle India (5 percent), Balaji Amines (6 percent), and Bajaj Electricals (11 percent).
We have collated views of experts on what investors should do when the market resumes trading on Thursday, 27 August:
Expert: Ashish Chaturmohta, Head of Technical and Derivatives, Sanctum Wealth Management.
Hero MotoCorp: Major support is seen at Rs 2,850-2,750 zone
The stock was in a major downtrend since hitting a high of Rs 4,084 in September 2017 to a low of Rs 1,475 in March 2020. At lower levels, the stock has seen high volumes accumulation.
The current rally from the lows has been strong and crossed the falling resistance trend line and also key 61.8 percent Fibonacci retracement of the whole fall Rs 4,084-1,475.
Thus, indicating that long-term trend has changed. In the near term, as long as the stock holds above Rs 3,020 levels, it can rally towards Rs 3,400-3525 levels. While on the downside, major support is seen at Rs 2,850-2,750 zone.
Affle India: Target seen at Rs 3,150-3,400
The stock has been in strong uptrend forming a higher top and higher bottom on the weekly chart since March low of Rs 899.
After crossing the previous all-time high of Rs 2,297, the stock has higher volumes suggesting fresh buying participation in the stock.
The next target level for the stock is seen at Rs 3,150 and then Rs 3,400 levels. On the downside, support is at Rs 2,600 levels.
Balaji Amines: Trend to continue| Resistance seen at Rs 1,075-1,120
The stock has been in a strong uptrend forming a higher top and higher bottom on the weekly chart since March low of Rs 200.
Volumes have been high indicating buying participation in the stock though momentum indicators have reached overbought levels on the daily time frame.
Price-wise, there are no signs of exhaustion and we expect the trend to continue unless the higher high and higher low structure breaks.
On the downside, immediate support is seen at Rs 900-850 levels. While resistance is seen at Rs 1,075-1120.
Bajaj Electricals: The current rally can continue towards Rs 600 levels
The stock was in a major downtrend from April 2018 high of Rs 693 to a low of Rs 260 in March 2020.
On the weekly charts, the stock has crossed the falling resistance containing the decline. It has also formed a bullish inverted head and shoulders pattern on the weekly chart and saw a breakout above Rs 466 levels.
Over the last couple of months, the volumes have been above average indicating buying participation in the stock.
Thus, the current rally can continue towards Rs 600 levels. On the downside, immediate support is seen at Rs 485 and below that Rs 460 levels.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.