Indian market closed in the red for the third straight day on July 28 wiping out more than Rs 1 lakh crore in terms of the average market-capitalisation of the BSE-listed companies.
The Nifty50 managed to hold above 15,700 while the S&P BSE Sensex also reclaimed 52,000 - thanks to smart recovery from crucial support levels towards the close of the trade.
Sectorally, buying was seen in telecom, metals, basic material, as well as capital goods while selling pressure was visible in auto, banks, utilities & realty.
Stocks that were in focus include Godawari Power, which closed with gains of over 5 percent, and BLS International, which rose by about 11 percent, on Wednesday.
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:
The stock has rallied significantly in the last year and has been continuously forming a ‘Higher Top Higher Bottom’ structure. The trend still continues to be positive as there are no signs of any reversal.
Hence, traders with existing positions could continue to ride the trend. However, the RSI levels indicate that the stock is in overbought territory, and hence, one should follow a trailing stop loss method on their positions.
The immediate supports are placed around Rs 1700 and 1632 which could be referred for placing stop loss.
After about one month of consolidation, the stock gave a breakout from its resistance and rallied with good volumes. The breakout range of 145-142 should now act as a support on any declines.
One can trade with a positive bias till the stock trades above the mentioned supports. The near-term resistance for the stock are seen around Rs. 169 and Rs. 190.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.