Indian equity market continued to consolidate for yet another session on Wednesday after seeing run up in the previous sessions that have taken the benchmark indices to uncharted territory. The Nifty50 managed to hold 17,350 levels amid volatility, while the BSE Sensex remained above crucial 58,000-mark.
The Nifty50 settled with a moderate loss of 8.60 points at 17,353.50, while the BSE Sensex declined 29.22 points to 58,250.26. The selling pressure was seen in select IT, auto and pharma stocks, while banks and select metals stocks provided support to the market.
Stocks that were in focus include pure play internet company Info Edge that hit a fresh record high of Rs 6,748.35 intraday before closing 8.72 percent higher at Rs 6,720.45. Meanwhile, Neogen Chemicals also saw a new high of Rs 1,223.70 before closing with a gain of 8.91 percent at Rs 1,198.35. ICICI Prudential Life Insurance rose 2.07 percent to close at Rs 716.85 after hitting an intraday record high of Rs 724.50.
Here's what Ruchit Jain, Senior Analyst - Technical and Derivatives at Angel Broking, recommends investors should do with these stocks when the market resumes trading today:
The stock gave a breakout from its consolidation in the month of June and resumed it uptrend thereafter. Since then, it has moving higher with decent volumes and the momentum accelerated in today's session to surpass the Rs 6,700 mark.
The trend still continues to be positive, however the Relative Strength Index (RSI) oscillator has reached the overbought zone.
Hence, short term traders can look to book profits on rise around Rs 6,900-7,000. The immediate support is now placed around Rs 6,425.
The prices have broken out from a consolidation phase and have thus resumed the uptrend. The volumes in last couple of sessions are high indicating buying interest in the counter.
The support has shifted higher to Rs 1,100 and hence, traders with existing positions should continue to ride the trend with a stop-loss placed below the mentioned support.
On the flipside, if the momentum continues, then the stock could rally towards Rs 1,400.
ICICI Prudential Life Insurance
The stock has swiftly moved higher in last five months and yet there are no signs of any reversal of the trend. The volumes continue to be good on the price upmove and are low in corrective phases.
Hence, we expect the uptrend to continue in the in the near term and thus, traders should trade this counter with a positive bias.
The near term support for the stock is placed around Rs 689 whereas Rs 750 is the immediate level to watch out on the higher side.
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