Indian market witnessed a smart bounce on Monday that pushed Nifty50 above 15,800 levels. Stiff resistance for the index is still placed at 15900-1600 levels.
Sectorally, the action was seen in realty, metals, banks, and the public sector while some profit booking was seen in the power sector.
Stocks that were in focus include Mahindra Holidays which rallied over 9, CLL Products that rose more than 4 percent, and Route Mobile which pared gains and closed flat. All stocks hit a fresh 52-week high on Monday.
Here's what Vikas Jain, Senior Research Analyst, Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
Mahindra Holidays | Hold | Target: Rs 330
The stock has witnessed a multi-year breakout above Rs 250 levels and gained 15 percent with strong volumes over the past few days.
We believe the current momentum will help the stock scale Rs 330 levels over the next few months, and any decline near Rs 255-260 levels would be a good opportunity to add the stock.
The RSI is still trading below 70 which affirms our positive stance.
CCL Products | Hold | Target: Rs 450
The stock jumped to an all-time high crossing its previous peak of Rs 372 with strong volumes.
It has reversed its intraday gains to close near the lowest point, but the trend continues to look promising for a higher target. We expect the stock to test Rs 450 levels over the next few weeks.
The stock is holding its medium-term average and gained 20 percent over the past two days to scale to an all-time high.
Despite a sharp up move in price, it has failed to garner high volumes which indicate reversal could be also sharp on the downside.
One should keep a trailing stop of Rs 1980, the previous high, or book profits at current levels.
Disclaimer: The views and investment tips expressed by the investment expert on Moneycontrol.com are his 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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