Indian markets surged on June 10 after closing in the red in the past two trading sessions. Sectors like realty, healthcare, finance, banks, and telecom supported the rally while marginal profit-taking was seen in the auto space.
The S&P BSE Sensex closed above 52000 while the Nifty50 also managed to close above 15,700 on June 10 with gains of over 100 points.
On the broader markets front – the S&P BSE Midcap index rose 1.2 percent, and the S&P BSE Smallcap index was up 1.7 percent – outperforming benchmark indices.
Stocks that were in focus include Indiabulls Housing Finance which rallied nearly 9 percent to hit a fresh 52-week high, IRB Infrastructure rose more than 8 percent, and Gujarat Pipavav closed with gains of more than 9 percent. All the stocks hit a fresh 52-week high on Wednesday.
Here is what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
Indiabulls Housing Finance: Hold
The stock has rallied by about 25 percent so far in the month of June. On June 10 once again the stock opened with a strong note and made a fresh 52-weeks high of Rs.296.80.
Strong intraday price volume activity indicates high chances of the further uptrend from current levels. On the daily and weekly charts, the stock has formed a strong promising price volume uptrend continuation formation.
For the trend following traders, Rs. 265 and 255 would be the key levels to watch out for in the next few sessions. The overall chart structure suggests that if the stock sustains above the same, then a breakout continuation texture is likely to continue up to Rs. 310-335.
IRB Infrastructure: 128 should be the sacrosanct level
The stock rallied nearly 7 percent on June 10. On June 10, the stock opened with a strong note and quickly surpassed Rs. 136 resistance mark with strong volume activity.
In the short-term time frame, the stock has formed a strong price volume breakout pattern. The structure of the pattern suggests that the breakout action will continue in the near future if the stock succeeds to trade above Rs. 128 level.
For the positional traders, Rs 128 should be the sacrosanct level, and as long as it trades above the same then we can expect an uptrend continuation wave up to Rs. 150-165.
On the flip side, trading below Rs. 128 may increase further weakness up to Rs. 120.
Gujarat Pipavav: Bulls are clearly dominating the price action
On June 10, the stock rallied over 10 percent. The stock registered a fresh 52- weeks high of Rs. 120 and after a sharp intraday price surge. The stock closed above Rs. 117 resistance mark which is broadly positive.
The important thing is the volume activity, and the incremental volume activity post the breakout that clearly indicates high chances of the further uptrend from current levels.
On the daily and weekly charts stock has formed a strong promising price volume breakout formation that indicates bulls are clearly dominating the price action.
Swing traders should watch out for Rs 111 and 105 support. The overall chart structure suggests that, if the stock sustains above the same, then a breakout continuation texture is likely to continue up to Rs. 140-155.
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