The market rebounded amid volatility after a day of big sell-off and managed to close with moderate gains on November 29. The BSE Sensex climbed more than 150 points to close at 57,260, and the Nifty50 rose 27 points to end the session above 17,050 levels.
The broader markets hit quite badly as the Nifty Midcap 100 and Smallcap 100 indices have fallen 1.35 percent and 2.61 percent, respectively.
Stocks that were in focus include Dr Lal PathLabs, which was the top gainer in the futures and options segment, rising 6.24 percent to close at Rs 3,885.45, and PNB Housing Finance which was locked in 5 percent upper circuit at Rs 524.55.
Navin Fluorine International and HCL Technologies were also in focus, rising more than 2 percent each to close at Rs 3,550.10 and Rs 1,133.15, respectively.
Here's what Karan Pai of GEPL Capital, recommends investors should do with these stocks when the market resumes trading today:
Dr Lal PathLabs on the monthly time frame can be seen moving higher after a two-month correction. On the weekly time frame, we can see the prices moving out of a six-week correction and also above the 20-week SMA (simple moving average).
On the indicator front, the RSI (relative strength index) plotted on the weekly chart can be seen moving higher towards the overbought level, indicating increasing bullish momentum in the prices.
Looking at the price action and the technical parameters mentioned above, we expect Dr Lal PathLabs to move higher immediately towards the previous swing high of Rs 4,243, after which we might see the prices test Rs 4,538.Dr Lal PathLabs seems to be a good buying candidate with upside targets of Rs 4,243 and Rs 4,538, we recommend a stop-loss level of Rs 3,718 for this setup.
PNB Housing Finance has been in a corrective phase for the past couple of weeks. This correction took the prices from Rs 925-443. In the week started November 22, the prices formed a strong bullish candle and engulfed the move of the past two weeks.
The RSI plotted on the weekly time frame can be seen moving higher towards the 50 level after forming a bullish hinge near the 40 mark, indicating increasing bullish momentum in the trend.
The price action points towards the possibility of increasing momentum and the prices moving towards Rs 633 which also happens to be placed near the 20-Week SMA. If the prices sustain above Rs 633 mark, we might see the prices move towards Rs 740 and eventually towards Rs 925.
Investors can accumulate PNB Housing at this point and hold with a target of Rs 740 and Rs 925 and maintain a stop loss of Rs 440 on closing basis.
Navin Fluorine has been forming a higher high higher low pattern since June 2020. On the weekly chart, we can see that the prices have been moving in a consolidation for the past five weeks. The prices are placed at the brink of a breakout.
On the indicator front, the RSI plotted on the weekly chart can be seen forming a higher high pattern as the prices reach near the point of a breakout, indicating increasing bullish momentum in the trend.
Going ahead, we can expect the bullish momentum to accelerate only if the prices breach above the Rs 3,709, after which we can expect the prices to move higher towards Rs 4,040 followed by Rs 4,224.
Our bullish view will be negated if the prices breach below the Rs 3,370. We also recommend this level to be a strict stop loss level on closing basis.
HCL Technologies has been going through a corrective phase for the past couple of sessions. In the week started November 22, the prices tested a low of Rs 1,090, after which some buying interest was seen. The buying pressure continued even on November 29, 2021 and the prices move higher and ended near the previous week high.
On the indicator front, the RSI can be seen forming a bullish hinge near the 50 mark and is trying to move higher towards the overbought level, indicating increasing bullish momentum in the trend.
Going ahead, Rs 1,170, the 20-week SMA will act as a hurdle. If the prices breach and sustain above this level, we might see the prices move higher towards the Rs 1,256-Rs 1,275 followed by Rs 1,378.
On the downside the support is placed at Rs 1,053 mark will act as a stop loss level.
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