Indian market bounced back sharply on Wednesday after closing in the red in the previous trading session following RBI’s announcement to support the economy.
The S&P BSE Sensex rallied more than 400 points while the Nifty50 closed above 14600 levels.
Sectorally, buying was seen in healthcare, banks, metals, and IT, while mild profit-taking was seen in realty stocks.
Stocks that were in focus include GE Shipping, which closed with gains of nearly 17 percent, Lupin which rallied 13 percent, and Cadila Healthcare that rose above 5 percent. All the stocks hit a fresh 52-week high with strong volumes.
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:
GE Shipping - Hold
The shipping stocks have shown good momentum in Wednesday’s session and the price up move in GE Shipping has been supported by very good volumes.
Post breaching the resistance of Rs 340, we have witnessed good buying interest and hence, the momentum should continue in the near term.
Traders should continue to hold the stock from a short to medium-term perspective and look to add on corrections. The immediate support for the stock is placed around Rs 360 while the resistance is seen in the range of Rs 435-445.
Lupin - Hold
The pharma space has been in an uptrend for the last few months but this stock has shown a relative underperformance compared to other largecap names.
However, we finally saw a breakout above its resistance zone of Rs 1100-1110 on Wednesday, and post the breakout, good buying was seen throughout the day. The volumes on breakout are very high indicating a resumption of the uptrend.
The ‘Rising Channel’ on the weekly charts indicates a probable target of Rs 1340 on the stock. Thus, traders should continue to hold the stock and trade with a positive bias. The immediate supports are now placed around Rs 1150 and Rs 1120.
Cadila Healthcare: Ride The Trend
The prices have been forming a ‘Higher Top Higher Bottom’ structure and the stock is thus in an uptrend. Along with other pharma names, we have witnessed a good price volume action in this counter in the last month.
The daily, as well as weekly chart structure, is positively placed and hence, we advise traders to continue to ride the trend. The immediate support for the stock is placed around Rs 565 whereas resistance is placed around Rs 635.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.