Indian market snaps 4-day winning streak and closed lower on Tuesday. The Nifty50 managed to hold on to 14850 while the Sensex saw a downtick of more than 300 points.
Sectorally, buying was seen in utilities, oil & gas, public sector, power, and infrastructure stocks while selling was seen in metals, finance, banks, and IT stocks.
Stocks that were in focus included Praj Industries which rose over 4 percent, SpiceJet rallied more than 9 percent, and BHEL gained 11 percent on Tuesday.
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:
Praj Industries: Book Profits
This counter appears to have ended its bear market which was in progress from the highs of 271 registered in the year 2007, with a low of 43 made in March 2020.
Since then it turned out to be a 9-bagger with a vertical up move. Moreover, in the last two trading sessions, it has sharply moved from the lows of 272 to 351 levels.
This sharp rise shall make this counter vulnerable for profit-taking at any point in time. Interestingly, multiple channel breakouts on the daily charts are also pointing towards a target of around 345 levels which is achieved in the last trading session.
If this counter sustains above 350 levels then the rally may extend towards 390 but for the time being, considering the sharp rise, booking profits looks to be a prudent decision whereas dips towards 300 levels can be considered as a fresh entry point with a stop below 272 on closing basis.
This counter seems to be in some sort of medium-term uptrend as it steadily rallied from the lows of 43 registered in last April.
In this process, it also appears to have cleared the near-term hurdles. Hence, it is looking like a buy-on-dips kind of opportunity as long as it sustains above 58 on a closing basis. However, on the long-term charts critical resistance is placed around 83. Therefore traders can continue to hold this counter for a target of 80 by placing a stop below 64.
SpiceJet: Fresh buy can be considered
The way this counter has rallied was on strong volumes which hint that it has embarked on a short-term uptrend ending its corrective downswing, at a recent low of 59, which was in progress from the highs of 108 registered in the year 2020.
Hence, if the stock sustains above 62, it can initially head towards 77 levels and beyond that, a fresh breakout is required to extend the rally towards 90. For time being fresh buying can be considered with a stop below 62 for an initial target of 77.Disclaimer
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