Indian market closed in the green for the fourth consecutive day in a row on Tuesday pushing benchmark indices to fresh record highs. The S&P BSE Sensex hit a record high of 52,869 while the Nifty50 hit a record high of 15,901.
Sectorally, buying was seen in realty, consumer discretionary, banks, FMCG, and finance stocks while profit booking was seen in healthcare, power, metal, and utilities.
On the broader markets front – the S&P BSE Mid-cap index rose 0.6 percent, and the S&P BSE Small-cap index rose 0.4 percent.
Stocks that were in focus include Gujarat Gas which rallied by over 7 percent to hit a fresh 52-week high, Action Construction surged 17 percent, and RAIN Industries closed with gains of over 9 percent as well. All the stocks hit a fresh 52-week high on Tuesday.
Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
Gujarat Gas: Buy on dips
This counter appears to have resumed its uptrend after a brief consolidation only to hit new lifetime highs and is now trading in uncharted territories.
However, based on the multi-week consolidation breakout which it registered a couple of weeks back on the weekly charts, an initial target of 665 can be projected and beyond that, a bigger target of Rs 690 can’t be ruled out.
Hence, traders are advised to adopt a two-pronged strategy of buying now and adding on dips, if any, in the zone of Rs 623 – 610. A stop suggested for the trade is a close below 605.
Action Construction Equipment: Wait for a dip
This counter seems to be in a strong uptrend as it witnessed a vertical move in the last 4 weeks from the lows of 139 to a high of around 250 levels.
In this process, it not only registered a fresh breakout on the weekly charts but also went into uncharted territories with new lifetime highs that should further strengthen the bullish sentiment.
In case if this counter manages to get past and sustain above 249 levels then a higher target of 270 should be expected.
Fresh buying is advisable only on a correction into the zone of Rs 230 to 220 levels with a stop below Rs 217 on a closing basis.
Rain Industries: Hold
This counter registered a Price and Volume breakout from its 28 days old corrective and consolidation phase. Moreover, for the last 35 weeks, this counter is moving in a well-defined ascending channel and this strong is coming after almost testing the lower boundary of said channel.
Hence, if the stock sustains above Rs 183 levels, a higher target of Rs 230 can’t be ruled out. Therefore, traders should buy into this counter and prefer to add more on dips if any in the zone of Rs 182 – 185 levels by placing a stop below Rs 183 levels on a closing basis.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.