The Indian market witnessed another session of consolidation on Monday with benchmark indices settling with minor losses. Sensex held the decisive 58,000 mark and Nifty defended the crucial support of 17,350.
Selling was seen in the private bank space and index heavyweight Reliance Industries, but buying in IT and metals limited the downside on September 13. The BSE Midcap and Smallcap indices continued to outshine frontline indices, rising 0.32 percent and 0.8 percent, respectively, during the previous trading session.
Stocks that hogged the limelight include chemical intermediates company Deepak Nitrite that hit an intraday fresh record high of Rs 2,440.90 before closing 2.86 percent higher at Rs 2,427.50 on September 13. Meanwhile, specialty chemical company Balaji Amines also moved to uncharted territory, touching a new high of Rs 4,719 and rising for the fourth straight session, before closing at Rs 4,641.85, up 7.60 percent.
Midcap IT company Persistent Systems also hit an all-time high of Rs 3,649.65 to finally settle at Rs 3,586.45, up 2.39 percent, continuing uptrend for the second consecutive session.
Here's what Vikas Jain, Senior Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
The stock scaled a record high crossing its previous peak near Rs 2,000 levels. However, the upmove lacks volume in the current momentum.
Relative Strength Index (RSI) has inched upwards to 81 levels and risk-reward is not in favour of longs and one should wait for a minor retracement.
We would recommend booking profits at current levels.
The stock is making a new high every month since August 20 with strong volumes and general positive momentum in the sector.
On the downside, the stock has strong support near to Rs 3,800 levels with respect to its short term moving averages and intermediate fortnightly lows.
We recommended holding the stock and the current upmove can lead the stock higher near to Rs 5,000 levels.
The stock has moved up by 135 percent YTD (year to date), which indicates there could be some moderation.
The sector has also completed its 21-week strong upmove and we expect it to underperform the broader markets. Being a high beta and midcap stock, the reversals will also be swift, so we recommend booking profit.
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