The bears took control of D-Street on July 8 by pushing the Sensex lower by over 300 points while the Nifty50 plunged nearly 100 points.
The trend still remains on the upside as the Nifty50 holds above crucial support levels but a break below 10,600-10,500 can trigger another round of profit-taking while a close above 10,900 will again put the bulls back in charge of D-Street.
Swift price action was seen in stocks like SAIL and Hindustan Copper on strong volumes. Affle India, and CreditAccess Grameen have hit upper circuits while Alok Industries has been hitting lower circuit for the past four consecutive sessions.
We have collated expert technical views on what should investors who missed the price action should do:
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
SAIL: Trend remains strong| Resistance: Rs 40| Support: Rs 33
The stock rallied over 10 percent on July 8. It stock opened with a gap on the upside and quickly surpassed the previous day's high with a strong volume activity.
Despite weak market conditions, SAIL maintained its strong momentum throughout the day. In the short-term time frame, the stock has formed a strong price volume breakout pattern.
The texture of the pattern suggests that breakout action will continue in the near term if the stock succeeds to trade above 33 levels.
For the swing traders, 33 should be the sacrosanct support level. As long as the stock is trading above the same, we can expect uptrend continuation wave up to 40.
Hind Copper: Trend remains strong| Resistance: Rs 45| Support: Rs 37.50
The stock has rallied more than 20 percent, so far, this week. Post strong uptrend rally from 33 to 38, the stock was trading in a narrow range.
But after a muted opening on July 8, the bulls again took control and due to sharp incremental volume activity, the stock rallied by over 10 percent.
On the weekly charts, the stock has formed a strong bullish candle along with strong modest volume activity which clearly suggests an uptrend is likely to continue in the short run.
Further, on the daily charts, the stock has formed a higher bottom series pattern, suggesting a strong bullish structure for the medium term.
For the positional traders, 37.50 should be the key level to watch, and if the stock manages to trade above the same, we can expect the uptrend to continue towards 45.
Affle India: Strong| Target: Rs 2000| Support: Rs 1650
The stock hit one more 5 percent upper circuit on July 8. For the last four days, the stock has been hitting the upper circuit. It has rallied from 1,500 to 1,760 within a short time.
The rally was price dominating and supported with modest volume activity. On the daily and weekly charts, the stock has formed a Higher High and Higher Low series pattern, which suggests the uptrend momentum is likely to persist.
For positional traders, 1,650 will be the trend decider. Trading above the same, we can expect further uptrend up to 2,000. However, for a close below 1,650, traders may prefer to exit long positions.
CreditAccess Grameen: Strong| Resistance: Rs 660| Support: Rs 600
In this week alone, the stock has rallied over 15 percent and after a long time, it has managed to trade above the 600-mark. For the last three days, the stock is closing in the upper circuit.
However, a rally with low volume activity will create doubt in traders' mind. The stock was consolidating between 500 to 560 price ranges and is heading towards 200-day SMA.
The short-term texture of the stock is positive but 660 should act as important resistance for the CreditAccess Grameen. On the flip side, it closed below 600 and may trigger further weakness up to 530 support level.
Alok Industries: Reduce long positions
In the last quarter, the stock has rallied from Rs 4 to Rs 50. This month also the stock tried to sustain above 55-mark but due to consistent selling pressure from traders and investors, it failed to continue with the positive momentum.
The stock is witnessing selling pressure and since the last four days, it is hitting the lower circuit. Back-to-back lower circuit clearly suggests traders prefer to book profits near Rs 50.
We are of the view that the stock is extremely volatile and there is a strong possibility of a further downside that can’t be ruled out.
On the upside, Rs 50-55 should act as strong resistance area in the near term. In case of any pullback rally from current levels, investors should reduce weak trading long positions.Disclaimer
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