Indian market closed with gains of over 1 percent on Tuesday supported by gains in metals, capital goods, industrials, and energy space.
On the broader markets front – the S&P BSE Midcap index rose 1.04 percent while the S&P BSE Small-cap index closed with gains of 1.49 percent.
Stocks that were in focus include Alkyl Amines that rose 20 percent to a fresh 52-week high, Balaji Amines which rallied more than 19 percent, and Vinati Organics that closed with gains of nearly 3 percent on Tuesday.
Here's what Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
This counter seems to be in a steady uptrend as it multiplied by almost 7 times from March 2020 lows of Rs 1021 levels. Moreover, the current leg of up move from the lows of Rs 5650 is backed by a multi-week narrow range consolidation.
Hence, any dip can be considered as an opportunity to create fresh long positions. As this counter is trading in uncharted territories, a target of Rs 9100 can’t be ruled out in the long term.
Long-term investors can remain positive as long as this counter sustains above Rs 6390 levels on a weekly closing basis. Short-term traders can continue to hold with a stop below Rs 7000 on a closing basis and look for a target of close to Rs 9,000 levels.
Since March 2020 this counter has multiplied by 10 times from the lows of 200. However, after regular rallies, it slipped into a multi-week consolidation before resuming its uptrend which resulted in a ‘steps and ladder’ kind of formation.
Moreover, since May 2020, this counter has been moving in a well-defined ascending channel with valid touchpoints. Hence, it may face some resistance at the upper boundary of the said channel whose value is placed around Rs 2500 levels.
Therefore, short-term traders are expected to book profits around Rs 2500 if it fails to close above the said level in the next session. A fresh breakout should be expected if it manages to sustain above Rs 2500 for much bigger targets placed around Rs 2900 levels.
Although this counter appears to have hit new lifetime highs, the volume chart is not that impressive. Hence, to retain a positive stance it needs to sustain above Rs 1680 levels going forward.
However, as this counter is in a long-term uptrend and moving inside a monthly ascending channel, it can eventually be expected to head towards Rs 2150 levels.
For the time being, traders/investors are advised to hold the position with a stop below Rs 1680 on a closing basis and look for targets close to Rs 2,000 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.