Tracking muted global cues, the Indian market witnessed knee-jerk selling reaction on Thursday which pushed the Nifty50 below 15,800, and Sensex by nearly 500 points.
Sectorally, buying was seen in utilities, power, and infra stocks while profit-taking was seen in metals, banks, public sector, and finance stocks.
The S&P BSE Midcap index fell 0.3 percent while the S&P BSE Small-cap index was down 0.09 percent.
Stocks that were in focus include Jay Shree Tea, which rose nearly 9 percent to hit a 52-week high, Speciality Restaurants (gained nearly 11 percent), and Sobha (saw gains of over 5 percent). All three stocks hit fresh 52-week high on Thursday.
Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, advises investors to do with these stocks when the market resumes trading today:
Jay Shree Tea: Uptrend to continue
Post Rs 108 breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 103 to Rs 125 within a short period of time. That rally was price dominating and the volume activity has been modest.
On the daily and weekly charts, it has formed a strong price volume breakout structure which clearly suggests a further uptrend from current levels.
For the swing traders, Rs 112 should be the trend decider level. We can expect a continuation of uptrend up to Rs 135-141 as long as it trades above Rsm112 levels. On the flip side, below Rs 112, uptrend would be vulnerable.
Speciality Restaurant: Buy on dips
After a strong uptrend rally from Rs 40 to Rs 65, the stock was hovering between Rs 60 and Rs 66. However, on Thursday, the stock has not only surpassed its previous resistance of Rs 66 but comfortably managed to sustain above the same.
The sharp 10 percent intraday price volume rally clearly suggests that the stock is in the strong hands and is likely to continue the uptrend texture in the near future.
Unless it trading below Rs 64, positional traders retain an optimistic stance and look for an upside Rs 80-83 fresh buying can be considered now and on dips if any between 70 and 66 levels with a stop loss below Rs 64.
SOBHA: Rs 525 should be the sacrosanct level
The stock has rallied over 7 percent on July 8, 2021. On Thursday, the stock opened with a gap up and quickly surpassed Rs 535-resistance mark with strong volume activity.
Despite weak market conditions, SOBHA Limited maintain its strong momentum throughout the day. On the short term time frame, the stock has formed a strong price volume breakout pattern.
The texture of the pattern suggests breakout action will continue in the near term if the stock succeeds to trade above Rs. 525 level.
For the breakout traders Rs 525 should be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to Rs 585-600.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.