Indian market staged a strong bounce back on Tuesday, but IT and pharma stocks witnessed some profit-taking after a strong rally seen in the previous trading session.
The S&P BSE Sensex rose 660 points while the Nifty50 is up 194 points to close at 14,504 on Tuesday.
Sectorally, buying was seen in auto, finance, metals, banks, and public sector stocks while profit-taking was visible in IT and healthcare stocks.
Some of the stocks in focus were TCS, which fell more than 4 percent post Q4 results, Infosys that was down nearly 2 percent ahead of results on Wednesday, and Wipro which closed with a downtick of over 3 percent on Tuesday.
Here is what experts said about these stocks:
Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Along with lifetime highs at Rs 3354 levels, this counter also appears to have registered a possible ‘Double Top’ around Rs 3320 on the weekly line chart.
Moreover, a sharp fall post results are hinting that price may be fully reflecting the result-related optimism. Hence, if weakness persists then it should ideally head towards Rs 2880 levels where some decent support exists.
However, in between minor support is placed around Rs 3000 levels and a breach of this on a closing basis shall drag it down towards Rs 2900 where positional traders are advised to create fresh buying with a stop below Rs 2880 on a closing basis.
The way IT counters moved in the last two tradings especially without participating in a market pullback rally, despite prevailing positive news flows from individual IT companies, is clearly suggesting that short term top (if not medium-term top) may be in place at life highs of Rs 1477 registered couple of days back.
Hence, if weakness persists then strong support where one can look to buy is placed around Rs 1250 levels. In between minor supports are available in the zone of Rs 1336 – 1313 levels. For time being fresh buying should be avoided.Wipro: Avoid
In line with the entire sector, this counter also seems to have hit a near-term top around Rs 451 levels. As the pace of fall erased 5 days of the rally from the lows of Rs 414 – 451 in just two trading sessions, more downsides should be expected going forward.
However, support is placed at Rs 397 and a breach of this on a closing basis shall open up much bigger downsides. Hence, traders will be better off avoiding this counter for time being.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.