Indian market closed with minor cuts on June 1 after 4 straight days of gains. The Nifty50 failed to hold on to record high and ended flat with a negative bias.
Sectorally, buying was seen in oil & gas, energy, consumer durables while profit booking was visible in metals, banks, realty, and consumer discretionary.
Stocks that were in focus include PNB Gilts which rallied by 20 percent to hit a fresh 52-week high, Rupa & Company also surged 20 percent, and Capri Global, too, closed with gains of nearly 20 percent. All three stocks hit a fresh 52-week high during the trade.
Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
PNB Gilts: Book Profits
Although this counter is trading at new lifetime highs, it has now approached its critical resistance points placed around Rs 77 on the long-term charts.
However, as new highs always augur well for the bulls it can be a good opportunity to create fresh long positions on dips.
For the time being, traders who are long shall exit if this counter fails to register a close above Rs 77 in the upcoming trading sessions as it is almost up by 30 percent in the last two sessions from the low of Rs 59.
In case if it sustains above Rs 77, then a higher target of Rs 97 can be projected. Fresh buying can be considered on dips into the zone of Rs 71 – Rs 67 with a stop below Rs 63 on a closing basis.
Rupa & Company: Book Profits
This counter witnessed a parabolic rise in the last couple of weeks as it moved higher from the lows of Rs 289 to Rs 476 levels in just four weeks and a huge gap up of the last session can be perhaps due to some positive news flow of influential investor entering this counter.
Hence, this rally clearly seems to have stretched on the upside. Technically speaking, it has a logical target of Rs 492.
As this counter almost neared the said targets, it looks prudent to book profits. Fresh buying opportunity shall arise on dip into the bullish gap zone of Rs 442 – Rs 427 levels.
Capri Global: Buy on dips
This counter registered a consolidation breakout after entering uncharted territories hinting that it has resumed its long-term uptrend.
However, this breakout with sharp price appreciation has taken this counter close to the upper end of the 29-week ascending channel.
Hence, it is again in need of a fresh breakout above the said channel with a sustainable close above Rs 542 levels. In that scenario, a higher target of Rs 640 can be projected.
Meanwhile considering the consolidation breakout positional traders are advised to adopt a two-pronged strategy of buying now and adding on dips in the zone of Rs 500 – Rs 480 levels but stop for this trade will remain below Rs 459 levels.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.