Indian market gave up all the morning gains on Wednesday to close the session in the red tracking muted global cues. The Nifty50 failed to hold on to 15,800 while small & midcap outperformed.
On the sectoral front, buying was seen in IT, energy, capital goods and healthcare stocks while selling pressure was visible in utilities, power, finance, and banks.
Some of the stocks that were in focus - Central Bank of India, which closed with gains of over 8 percent, IOB rose nearly 9 percent, and PNC Infratech closed with gains of 11 percent on Wednesday. All the stocks hit a fresh 52-week high.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking recommends investors should do with these stocks when the market resumes trading today:
Central Bank of India: Ride the trend
The stock has recently been in news for disinvestment by the government of India. On the back of this news, prices have seen an up move in the month of June after a long period of under-performance.
The stock has delivered returns of over 48 percent in one month and the price up move has also been supported by higher volumes.
The stock is forming a ‘Higher Top Higher Bottom’ structure on the daily chart and the recent swing low coincides with its 20 DEMA at Rs. 22.75.
Hence, traders should continue to ride the trend with a trailing stop loss method. The immediate supports are placed around Rs. 25 and Rs. 22.75 whereas resistance is seen around Rs. 35.
On the back of news of disinvestment, IOB has seen a sharp surge and has delivered returns of more than 66 percent in the last month.
However, this move is seen after a long period of underperformance compared to other PSU banks. The volumes in the up move is good and hence, we could see a continuation of the trend.
The immediate supports for the stock are placed around Rs. 25 and Rs.22.75. Traders with existing holding can continue to hold with a stop loss placed below the mentioned support.
PNC Infratech: Buy on dips
The stock is within a long-term uptrend, and the prices had seen a time-wise correction in the last three months.
On Wednesday, the stock gave a breakout from the consolidation and has thus resumed its higher degree uptrend.
The sharp surge in volumes and the positive crossover in momentum reading RSI indicate the probability of a continuation of the trend. Hence, one should hold on to existing longs and look to buy on dips if any in the near term.
The support for the stock is now placed around Rs. 267 while Rs.308 and Rs.330 are seen as potential near-term targets.Disclaimer
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