Positive global cues and domestic economic data have helped the market rebound sharply. The BSE Sensex rallied more than 600 points to 57,685, and the Nifty50 climbed 184 points to 17,167 on Wednesday as buying was seen across sectors, except pharma. Nifty Bank, Auto, IT and Metal indices were the leading gainers.
The broader markets also closed in the green with the Nifty Midcap 100 index rising 1 percent and the Nifty Smallcap 100 index up 0.12 percent.
Stocks that were in focus include IndusInd Bank, which was the biggest gainer in the Nifty50, climbing 5.74 percent to Rs 933.65, and Chambal Fertilisers and Chemicals, which was the third biggest gainer in the futures and option segment, rising 9.16 percent to Rs 397.35.
Texmo Pipes and Products was locked in the 10 percent upper circuit at Rs 61.60, and jumped 5.9 percent to Rs 1,651.90 on the BSE.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today:
In the recent past, this stock has corrected quite a lot from its recent highs. It fell from Rs 1,240 on November 2 to Rs 900 now - a decline of nearly 30 percent in a month.
It bounced back sharply on December 1, igniting hopes of a counter rally. Going ahead, sustenance above Rs 1,000 levels will be the key for further up move till Rs 1,100 and higher levels.
It is very well placed on short as well as long term charts, trading comfortably above its 50, 100 and 200-day moving averages, indicating that the up-side move will continue.
In the immediate near-term, we see the stock retesting the Rs 440 levels. Short to medium term traders can consider buying the stock at current market price for Rs 440-475 targets, keeping a stop below Rs 350.
It has recently posted fresh breakout from a rectangle formation on the daily chart. Breakout was supported by strong volume that led to a 10 percent upper freeze.
Presence of important moving averages 50 and 100 exponential moving average (EMA) nearby will restrict the downside move. Considering its current chart formation, we expect it to test Rs 70 soon, which is the first target of the rectangle formation in which it was trading for past six months.
It has been a consistent performer and has been unaffected from the recent sell-off in Indian equity markets. This itself indicates that the stock is in strong hands and an upward move is likely to continue.
We advice traders to hold long positions with a stop loss below Rs 1,420 for Rs 1,800-2,000 targets in the coming months.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
