Bears took control of Dalal Street on September 28. BSE Sensex fell more than 1,000 points intraday but pared some losses to end with a loss of 410 points below the 60,000 mark. Meanwhile, Nifty50 shed over 100 points to close below 17,750 levels.
Banking & financials, auto, IT and realty stocks were under pressure, whereas buying was seen in PSU banks and select metals stocks. The broader markets corrected in line with benchmarks as the Nifty Midcap 100 and Smallcap 100 indices fell over half a percent each.
Stocks that were in focus included state-owned electric utility company Power Grid Corporation of India, which hit a fresh record high of Rs 188.90 before closing at Rs 183.95 with gains of 4.52 percent, and the country's largest power producer NTPC which touched a 52-week high of Rs 133.65 before ending with the loss of 4.02 percent at Rs 131.95.
Cera Sanitaryware was also in action, hitting a fresh record high of Rs 5,700 and finally closing with a gain of 6.02 percent at Rs 5,397.20.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:
Power Grid Corporation of India
This counter appears to be moving in a range of Rs 188 to Rs 170 levels. Hence, despite the decent price appreciation on the back of huge volumes it failed to register a fresh breakout with a close above the said range.
Hence, short term traders can consider booking profits if this counter fails to sustain above Rs 190 on closing basis in next trading session. On such a close a higher target of Rs 207 can be expected.
Fresh buying can be considered either on a close above Rs 188 or on dip towards Rs 180 with a stop loss below Rs 173 levels.
This counter seems to have resumed its upmove after a brief pause on much higher volumes. However, at Tuesday's intraday high of Rs 133 levels it tested the down sloping trendline on weekly charts which is in progress from the October 2017 highs of Rs 157.
Hence, to continue this upward momentum it needs to initially clear the hurdle of Rs 134. In that scenario a higher target of Rs 147 can be expected.
Nevertheless, considering the recent large price appreciations of single day on the back of massive volumes dips can be considered as an opportunity to add into this counter. Positional traders can initiate fresh longs with a stop below Rs 127 on closing basis and look for a target of Rs 147.
New life time highs in a falling market is an indication of strong uptrend prevailing in this counter. Moreover on monthly charts it seems to have resumed its uptrend with a strong candle after extremely narrow moves of preceding two months.
Moreover on intra-month basis it seems to have registered a breakout above the 67-month channel. Hence, sustain above Rs 5,400 levels by the end of this week, a much bigger targets toward Rs 5,700 can be expected.
For time being, traders are advised to hold the position and add on dips preferably around Rs 5,100 levels by placing a stop loss below Rs 5,000 levels and look for a target of Rs 5,700.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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