The market seems to be on a strong footing as the benchmark indices gained for fourth consecutive session on January 12, with the Nifty50 closing above 18,200 and the BSE Sensex rising over 500 points to 61,150, backed by positive global cues.
Banking & financials, auto, metals and select FMCG stocks aided the rally. The Nifty Midcap 100 and Smallcap 100 indices also witnessed buying interest, rising 1.25 percent and 0.88 percent respectively.
Stocks that were in focus included Adani Green Energy which hit a fresh intraday record high of Rs 1,667, before closing with 5.08 percent gains at Rs 1,647.55; and Tata Communications, which scaled a fresh intraday record high of Rs 1,587, before closing at Rs 1,557.70 with 5.3 percent gains.
Among others, IndiaMART InterMESH was the fifth gainer in the futures & options segment, rising 5.32 percent to Rs 6,850.25, while Varroc Engineering jumped 6.64 percent to Rs 421.40.
Here's what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends what investors should do with these stocks when the market resumes trading today:
After a year of consolidation, the stock has finally broken out of the range and is trading at life time high. Now the immediate target on the upside is close to Rs 2,000 mark and trend will not change until Rs 1,300 is breached.
Thus traders and investors are advised to keep holding the stock with a revised stop-loss of Rs 1,300.
At this juncture, IndiaMART is in consolidation phase. The short term trend has just turned positive since we are witnessing higher top and higher bottom again on the daily scale.
Traders can go long fresh from here on with a stop-loss of Rs 6,300. On the other hand, investors can keep holding the positions, but fresh entry can be taken only above Rs 7,600 when the stock will surpass its long term moving average.
Overall the price range could be Rs 10,000 – 6,000 for few months.
In today's session we have witnessed a fresh breakout in Tata Communications and that too at its life time high. The target for the breakout comes around Rs 1,750 and hence short tern traders can enter the stock with a stop-loss of Rs 1,450.
Meanwhile, investors should keep holding their positions since the stock is in strong uptrend. Larger degree trend would remain intact till the time Rs 1,250 is not breached.
The weekly chart of Varroc depicts that the stock recently confirmed a breakout from falling trend line. Along with that it has also confirmed a breakout from the ICHIMOKU cloud which indicates strength.
For short term traders, reward to risk ratio is not favourable at this point in time and hence they can wait for a dip to go long in the stock. However, investors should keep holding the stock since it is poised to retest Rs 500 – 550 levels in the coming months.
Disclaimer: The views and investment tips expressed by investment 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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