Indian markets closed in the red for the second consecutive day on June 17, tracking a muted trend in Asian markets on a hawkish commentary from the US Federal Reserve.
The S&P BSE Sensex saw a dip of about 200 points, while the Nifty50 closed below 15,700. Sectorally, buying was seen in IT, as well as FMCG stocks, while selling pressure was visible in power, infrastructure, metals realty, and utility stocks.
On the broader markets front, the S&P BSE midcap index fell 1.29 percent, and the smallcap index 0.58 percent.
Stocks that were in focus included Radico Khaitan, which rallied nearly 7 percent to hit a fresh 52-week high, Tata Consumer rose 1.2 percent and APL Apollo Tubes closed with gains of more than 5 percent. The three stocks also hit a fresh 52-week high on the day.
Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
The stock rallied over 7 percent on June 17. It opened on a positive note and quickly surpassed the Rs 745 resistance mark with a strong volume activity.
Despite weak market conditions Radico Khaitan Ltd maintained strong momentum through the day, which is a positive sign.
On the short-term time frame, the stock formed a price volume uptrend continuation formation. The texture of the pattern suggests that breakout action will continue in the near term if the stock trades above Rs 720.
For the trend following traders, Rs 720 and 735 should be the sacrosanct levels, and if the stock trades above the same, we can expect the uptrend continuation wave up to Rs 835-875.
Tata Consumer Products
After Rs 685 breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 640 to Rs740 in a short period of time. The rally was price dominating and the volume activity modest.
On intraday and daily charts, the stock consistently formed a higher high and higher low series, suggesting that a strong uptrend formation is likely to continue in the near future.
However, on the short-term time frame, the momentum indicators signal that stock is in an overbought zone and the uptrend would be vulnerable if it closes below Rs 715.
For swing traders, Rs 715 should be the trend deciding level. We can expect a further uptrend to Rs 775-800 as long as the stock trades above Rs 715.
On the flip side, a close below the said levels would push traders to exit long positions.
APL Apollo Tubes Ltd
The stock has rallied more than 20 percent in of June and after Rs 1,400 breakout, the stock has maintained a higher high and higher bottom formation.
The stable price volume activity after the breakout clearly indicates a strong uptrend wave. On June 17, APL Apollo Tubes registered a fresh all-time high of Rs 1,599 but due to profit-booking at higher levels, it failed to cross the Rs 1,600-mark.
On the daily and weekly charts, the stock has formed an uptrend continuation formation, which is grossly positive.
However, on the short-term time frame, the stock is in an overbought zone and traders may prefer to reduce long positions if it trades below Rs 1,480.
The texture of the chart suggests that the uptrend momentum is likely to continue in the medium term but the stock may take a temporary pause near Rs 1,600-1,635 range.
For the swing traders, Rs 1,480 should be the key level to watch, below the same uptrend would be vulnerable.
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