Indian market consolidated for the second day in a row on June 2. Benchmark indices closed mixed while the broader market outperformed with gains of over 1 percent each.
Sectorally, the rally was seen in power, energy, auto, realty, and metals while profit-taking was seen in IT, FMCG, banks, and telecom stocks.
Stocks that were in focus include Motherson Sumi which rallied over 13 percent to hit a fresh 52-week high post-March quarter numbers, and Sumitomo Chemical rallied nearly 14 percent on Wednesday. All the stocks hit a fresh 52-week high.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking Ltd, recommends investors should do with these stocks when the market resumes trading today:
Motherson Sumi - Hold
The stock has been forming a ‘Higher Top Higher Bottom’ structure and is thus in an uptrend. Post the announcement of its quarterly results, we witnessed good buying interest in the stock where prices surpassed its recent swing high and posted gains of over 13 percent with good volumes.
This indicates a continuation of the uptrend and hence traders should continue to ride the trend until any reversal signs are seen.
The near-term support for the stock is now placed around 245 whereas immediate resistance is seen around Rs. 290-300.
Sumitomo Chemical - Hold
The stock price gave a breakout from its consolidation phase supported with very good volumes. The RSI oscillator is hinting at a continuation of the positive momentum and thus it could continue its up move in the short term.
Prices are trading in uncharted territory and hence one should ride the trend by keeping a trailing stop loss method. The breakout level of Rs 340 would now be seen as support on the decline and hence one can keep a buy-on-dip approach.
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