Helped by gains in IT and telecom names, Indian markets closed in the green on August 24. The S&P BSE Sensex rallied more than 200 points, while the Nifty50 closed just a shade below 16,500.
Sectorally, on the BSE, the IT index added over a percent, and the oil & gas index 0.5 percent. However, auto, capital goods, healthcare, metal and realty indices fell 0.5-1 percent.
Stocks that were in focus included HCL Technologies that rallied over 4 percent to hit a fresh 52-week high. TCS rose over 2 percent, and Tech Mahindra ended with gains of over 1 percent. They, too, hit a fresh 52-week high.
Here's what Vikas Jain, Senior Research Analyst, Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
HCL Technologies: Hold |Target: 1,230
The stock has witnessed a strong breakout from its multi-week top of 1,069, with strong volumes and higher delivery-based buying over the past few days.
We believe the positive momentum can continue and test 1,230 levels from its W-pattern breakout.
Any decline or retracement near the short-term average of 1,060-1,080 would be a good opportunity to enter the stock.
The stock has gained by 14.5 percent month-to-date (MTD), being one of the best outperformers among index heavy weights and scaling a new high every day in August.
We believe the current up move would exhaust by month-end and the stock may see some consolidation. The previous peak of 3,350 will act as a strong support now.
The stock has completed its 21-week move from the bottoms of 935 levels on April 21.
We believe there could be some bout of profit-booking from current levels after a sharp outperformance over the past few weeks.
The Relative Strength Index (RSI) has moved to the higher band of 83, hence the risk-to-reward ratio is not in favour of fresh longs and we would advise investors to book profits.
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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