Indian market closed with gains of over 1 percent for the second consecutive day in a row on Tuesday. Bulls pushed the S&P BSE Sensex above 50,000 for the first time since April 1 while Nifty50 also closed above 15000 for the first time since March 12.
Sectorally, buying was seen in autos, consumer durable, consumer discretionary while selling was seen in the telecom space.
On the broader markets front, the S&P BSE Midcap index rose nearly 2 percent while the S&P BSE Smallcap index closed with gains of 1.3 percent.
Stocks that were in focus include Hindustan Zinc which rallied over 9 percent to hit a fresh 52-week high, Birla Corp and MRPL closed that with gains of over 8 percent each. 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:
Hind Zinc: Buy on Dips
This counter appears to have registered a breakout after a 4-month consolidation in a range of Rs 330 – 260 levels. Hence, as long as it sustains above Rs 320 levels, it remains a buy-on-dip opportunity. This range breakout target itself is placed around Rs 400 levels.
Therefore, traders are advised to adopt a two-pronged strategy of buying now and adding further on the dip, if any, close to Rs 330 levels and look for a target of Rs 390. A stop-loss suggested for this positional trade is below Rs 320 on a closing basis.
Birla Corp: Book Profits
This counter seems to have resumed its uptrend, after the recent correction from the highs of Rs 1014 to 907 levels, couple of weeks back.
This current vertical up move of the last three weeks brought the stock at the upper boundary of the 37-days old channel.
Hence, going forward, it looks critical for this counter to register a fresh breakout with a close above Rs 1230 levels. The said breakout shall open up much higher targets on this counter.
But in between critical resistance is placed at its lifetime highs of Rs 1265 registered in January 2018 levels. For the time being, traders are advised to book profits if it is unable to close above Rs 1230 in the next two trading sessions.
This counter appears to be in a bear market of its own as it is down from the highs of Rs 147 registered in the year 2017 to a low of Rs 20.
Since then, it appears to be in the bear market rally and making a channelled move on the weekly charts and currently facing resistance at the upper boundary of the said channel.
Hence, traders are advised to hold this counter with a stop below Rs 49 on a closing basis and prefer booking profits if it fails to get past Rs 56 on a closing basis in the next two trading sessions. In case if it manages to register a close above Rs 56, a higher target of Rs 67 can be expected.Disclaimer
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