The market extended gains to hit 18,000 mark on the Nifty50 in morning, but after an initial hour of run, it wiped out all those gains and turned rangebound for the rest of the session before closing with two-tenth of a percent loss on November 2.
The BSE Sensex held 60,000 mark, falling 109 points to 60,029, and the Nifty50 lost around 40 points to close below 17,900 levels, weighed down by select IT, FMCG, Pharma and Metal stocks.
However, the broader markets smartly outperformed benchmark indices as the Nifty Midcap 100 index was up 0.83 percent and Smallcap 100 index gained 1.02 percent.
Stocks that were in focus include RBL Bank which was the biggest gainer in the futures & options segment, surging 11.76 percent to Rs 206.75, and Indiabulls Real Estate which gained 9.32 percent to close at Rs 176.50 after consolidation for the last couple of weeks.
Bandhan Bank was also in action mode and was the third top gainer in the F&O segment, rising 8.08 percent to Rs 311, while Shriram Transport Finance hit fresh 52-week high of Rs 1,624.70, before closing with 10.17 percent gains at Rs 1,576.20.
Here's what Mazhar Mohammad of chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
Tuesday's sharp rally on the back of massive volumes is hinting, most probably, a durable bottom at the recent low of Rs 172. This 12 percent price appreciation also bridged the post result day bearish gap present in the zone of Rs 200 – Rs 187 levels in the single attempt. However, it needs a close above Rs 212 to confirm a trend reversal in favour of bulls.
In that scenario, strength shall further extend to Rs 226 levels. For time being dip around Rs 197 can be a good entry point for fresh buying with a stop loss below Rs 184, whereas positional traders who were fortunate enough to buy at lower levels shall hold for a target of Rs 212 levels.
Despite decent price appreciation in the last trading session, this counter seems to be in a multi-week consolidation in the larger band of Rs 186 to Rs 125 levels. Hence, unless it gets past Rs 186 levels bigger sustainable upswing shall be expected.
Nevertheless, considering massive volumes of last trading session, dips can be an opportunity for positional traders with a stoploss below Rs 161 levels on a closing basis.
In case if it registers a close above Rs 186 levels then it can head towards Rs 230.
Huge volumes of last two trading sessions with decent recovery from the lows of Rs 172 is hinting that this counter has reversed its course of direction in favour of bulls. However, medium term trend seems to be still in a sideways mode.
At this juncture, there seems to be a trading opportunity only for an initial target placed in the zone of Rs 327 – 337 levels.
However, dips in the zone of Rs 298 – 290 can be an opportunity to create fresh longs with a stop below Rs 184 on closing basis.
Shriram Transport Finance Corporation
This counter seems to have registered a breakout as it emerged out of its multi-week consolidation range of Rs 1535 – Rs 1,238 levels. Moreover, in the last session, this counter erased 4 trading sessions of corrective downswing from the highs of Rs 1,588 – Rs 1,389 levels signalling that this counter has embarked on a medium-term uptrend.
In such a scenario, the ideal target for this breakout shall be around Rs 1,800 based on the width of the consolidation phase. However, going forward it needs to sustain above Rs 1,530 levels which is a breakout point.
Hence, positional traders are advised to hold the position with a stop loss below Rs 1,500 on closing basis and look for a target of Rs 1,790. Fresh buying can be considered on a dip into the zone of Rs 1,550 – Rs 1,530.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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