Indian market pared gains on Wednesday (August 25) afternoon after hitting fresh record highs in the session. The Nifty50 hit a high of 16,712 while the S&P BSE Sensex hit a high of 56,198.
On the BSE, IT, power, and oil & gas indices gained 0.8-1.2 percent, while selling was seen in the realty, healthcare and banking stocks on Wednesday.
Stocks that were in focus include Coforge, which closed with gains of over 1 percent, Tata Motors (rose nearly 2 percent), and Canara Bank (pared gains and closed 3 percent lower) on Wednesday.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking Ltd, recommends investors should do with these stocks when the market resumes trading today:
The IT space has been in an uptrend and this stock has shown a decent outperformance in the last few months. In this uptrend, the ‘20 DEMA’ has been acting as support on declines and the trend continues to be up for the stock.
The immediate supports for the stock are placed around Rs. 4830 and Rs. 4630 while resistance is seen around Rs. 5250. Traders are advised to continue to trade with a positive bias till the above-mentioned supports are intact.
In the last couple of months, prices have corrected from their highs and have now approached the ‘200 DMA’ support. The ‘RSI’ oscillator on the daily chart is indicating a positive divergence with price forming a new low but oscillator forming a higher low.
This indicates a probability of a pullback from current levels and hence, we expect an upmove towards its resistances of Rs. 294 and Rs. 304 in the short term. The support for the stock is now placed around Rs. 268 which should be referred to as a stop loss on existing longs.
The stock has been consolidating in a range for the last few weeks. In this consolidation, prices have traded above its ‘200 DMA’ support which is a good sign.
The recent price volume action indicates that the stock is undergoing a timewise correction and thus, traders should hold existing longs with a positional perspective.
The supports for the stock are placed around Rs. 148 and Rs. 141 while breakout is seen above Rs. 160.
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.
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