The Indian stock market’s record-breaking spree continues as the Nifty crossed 16,700 for the first time and Sensex went past 56,000 on August 18 but profit-taking in late trade saw the benchmarks end in the red.
Among sectors, the Nifty metal and bank indices fell 0.8 percent each, while buying was seen in the FMCG, pharma, and PSU Bank names.
The market was shut on August 19 on account of a public holiday.
Stocks that were in focus on August 18 include Aster DM Healthcare which rose over 7 percent to hit a 52-week high, United Spirits rallied nearly 10 percent, and HDFC Bank pared gains to closed in the red.
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:
The stock has given a breakout from a long consolidation phase. The breakout was supported by high volumes in the last couple of sessions, which is a positive sign.
The Relative Strength Index (RSI) reading has surged along with the price, indicating positive momentum. The trend for the stock has turned positive.
Traders should hold on to their longs and look for buying opportunities on declines. The previous resistance around Rs 178 should now act as a support on dips.
On the flip side, the reciprocal retracement indicates a probable target of around Rs 209.
After the sharp run-up in May and June, the stock went into a consolidation phase. However, on August 18, the stock resumed its uptrend and the volumes were higher compared to recent past.
The price-volume structure indicates that the stock is likely to continue its momentum and could head towards Rs 760 in the near term. On any dips, 690-680 is likely to act as a support zone.
The stock has been in a consolidation phase and the near-term trend is sideways. In the last five months, rallies towards Rs 1,550-1,570 range have witnessed profit booking and we saw similar activity on August 18.
To resume uptrend, the stock needs to surpass the higher end of the mentioned range with good volumes, until then the trend will remain sideways. The immediate support for the stock is placed at around Rs 1,470.
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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