Benchmark indices closed above their crucial psychological levels on Wednesday which is a positive sign. The S&P Sensex closed above 51000 while the Nifty50 also reclaimed 15300 levels on a closing basis.
Sectorally, buying was seen in realty, IT, consumer discretionary, auto, and financials, while profit-booking was seen in metals post-Credit Suisse downgrade, followed by power and utility stocks.
Stocks that were in focus on Wednesday include Wockhardt which rallied nearly 9 percent to hit a fresh 52-week high, Dish Tv (up over 10 percent) and Bajaj Finserv (up 5 percent). All three stocks hit a fresh 52-week high.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking Ltd, recommends investors should do with these stocks when the market resumes trading today:
Wockhardt - Hold
Historically, we have seen big swings in the stock due to which it is well known to be a high beta counter. Recently, prices have been forming a ‘Higher Top Higher Bottom’ structure with good volumes seen along with the price up moves in the last one month.
Hence, the near trend for the stock continues to be positive and thus, traders with long positions should continue to ride the trend.
The immediate support for the stocks is placed around Rs 738, while on the higher side, Rs 845 and Rs 880 would be the levels to watch out for.
Dish TV - Hold
After underperforming for a long time, the stock is finally witnessing some buying interest.
In May, prices have rallied backed by rising volumes which indicates a change in the short-term trend. Hence, one should trade with a positive bias and hold existing longs from a short-term perspective.
On any declines, Rs 15-14 range would be the support, while prices have the potential to test Rs 20-21 in the near term.
Bajaj Finserv - Hold
The price structure looks quite bullish as it has been one of the outperforming stocks within its sector. Since the start of this month, we have seen some consolidation in prices which just seems to be a time-wise correction.
This entire consolidation was above its ‘20 DEMA’ support and the stock has now resumed its uptrend with good volumes. Hence, one should hold on to existing longs and also look for buying opportunities on any declines.
The support for the stock is now placed around Rs 11385 with a potential near-term target placed around Rs 12300.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.