The market corrected further with the Nifty50 shedding nearly 200 points in three consecutive sessions on December 14 as traders and investors remained cautious ahead of the Federal Reserve's interest rate decision due on Wednesday. Weak Asian cues also weighed on the sentiment.
The BSE Sensex was down 166 points to close at 58,117, while the Nifty50 fell 43 points to 17,325 as select auto, banking and financial, and FMCG stocks were under pressure. The broader markets closed mixed with the Nifty Midcap 100 index falling 0.19 percent and Smallcap 100 index rising 0.22 percent.
Stocks that were in focus on Tuesday include Aditya Birla Fashion and Retail, which was the second biggest gainer in the futures and options segment, rising 6.46 percent to close at Rs 283.35, and Power Grid Corporation of India, which was the top gainer in the Nifty50, climbing 3.84 percent to Rs 212.25.
The BSE was also in action, hit a fresh record high of Rs 2,323, before closing with 8.5 percent gains at Rs 2,291.30, while Adani Total Gas also touched a new high of Rs 1,900.50, before settling with 4.96 percent gains at Rs 1,899.80.
Here's what Mazhar Mohammad of Chartviewindia, recommends investors should do with these stocks when the market resumes trading today:
Aditya Birla Fashion and Retail
Albeit this counter made a strong recovery, on the back of massive volumes, in last trading session, its larger trend seems to be sideways as it is still negotiating with the multi-quarter trend line on the long-term charts.
Hence, for a sustainable up move, it needs to get past the Rs 310 levels. In that scenario, strength shall extend around Rs 360 levels. It needs to sustain above Rs 263 as breach of that can negate the current bullish outlook.
Though we don’t advise fresh buying at current level, investors who already own this counter can continue to hold with a stop loss below Rs 260, whereas on dip close to Rs 270, fresh buying can be considered for targets of Rs 310.
This counter appears to be in a steady uptrend as it is consistently hitting new life-time highs at regular intervals with healthy consolidation phases in between. However, the rally of last six months from the lows of Rs 594 to a high of Rs 2,323 seems to be parabolic in nature which can make this counter remain vulnerable for profit-taking at any point in time.
Therefore, positional traders are advised to trail their stop losses by making use of five-day exponential moving average (EMA) and any close below that average should be used to square off the position.
For the time being, short-term traders can make use of dip towards Rs 2,200 to create fresh positions with a stop loss below Rs 2,080 and look for a near term target of Rs 2,490.
Power Grid Corporation of India
This counter seems to be moving in a well-defined channel for the last 35 weeks and enjoying strong buying support around Rs 200 levels. Hence, sustaining above Rs 203, it can initially head towards the upper boundary of the said channel around Rs 227.
But for a sustainable up move, with initial targets of close to Rs 250, it needs a breakout above the ascending channel.
For the time being, dips can be an opportunity to create fresh longs for a target of Rs 227 with a stop loss below Rs 200 levels.
New high is always a good sign hinting strength in long-term uptrend. Moreover, this counter seems to have undergone multi-week consolidation around its erstwhile life high placed around Rs 1,715 levels before breaking out into uncharted territories.
Therefore, sustaining above Rs 1,770 levels a bigger move can be expected provided it consistently trade above the immediate hurdle present around Rs 1,900 levels.
In that scenario, a higher target of Rs 2,250 can be expected. Even fresh buying can be considered around current levels with a stop below Rs 1,769.
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.
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