The market rebounded sharply amid short-covering and value-buying on December 21, after more than 3.5 percent correction in the previous two trading sessions, tracking positive global cues.
The BSE Sensex shot up more than 1,000 points intraday but finally settled with nearly 500 points gains at 56,319 due to some profit-booking, while the Nifty50 jumped more than 150 points to 16,771 at close.
The broader markets also gained strength with the Nifty Midcap 100 and Smallcap 100 indices rising 1.3 percent each. All sectors participated in the rally with IT and Metal being the prominent gainers, rising 2 percent and 3 percent.
Stocks that were in focus include NALCO, Godrej Consumer Products, Metropolis Healthcare and Indus Towers, which were among the top five gainers in the futures and options segment.
Indus Towers rallied 6.2 percent to close at Rs 252.55, and Metropolis Healthcare climbed 5.83 percent to Rs 3,308.10, while NALCO jumped 5.41 percent to Rs 98.45, and Godrej Consumer Products rose 5.12 percent to Rs 936.90.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:
In line with the market, metals made a strong comeback in the last trading session and NALCO is no exception to that phenomenon. However, technically speaking, for sustainable up move, this counter needs a fresh breakout above Rs 104 levels where it seems to have formed a double top kind of formation.
Hence, on a close above the Rs 104 levels, a higher target of Rs 118 can be expected. For the time being, it is a hold with a stop-loss below Rs 94 levels for a short-term target of Rs 104. Fresh buying is advisable only on a close above Rs 104 levels.
This counter seems to have slipped into intermediate downtrend after registering lifetime highs of Rs 1,138 in last September. However, after almost 3 months of correction it appears to be consolidating in a broader range of Rs 950 – Rs 870 levels.
Hence, for a sustainable up move, it needs a decisive breakout above Rs 950 levels. In that scenario, we can expect a target of Rs 1,030 levels.
Considering decent price appreciation last session on the back of relatively higher volumes, one can go long with a stop-loss below Rs 929 levels and look for an initial target of Rs 1,030.
This counter seems to be in a multi-week corrective and consolidation phase in the larger zone of Rs 3,300 to Rs 2,610. However, in the last six weeks, the consolidation range seems to have narrowed at the upper band between Rs 3,400 and Rs 3,000 with relatively long upper shadows.
Hence, for sustainable up move, it needs a strong close above Rs 3,400 levels. In that scenario, the initial target of Rs 3,800 can be expected. Existing investors can hold with a stop-loss below Rs 3,100 levels, whereas fresh buying is advisable only above Rs 3,400 levels.
Albeit this counter is in some kind of downtrend from the highs of Rs 332 levels, it seems to have hit a near-term bottom as it bounced from the significant technical support on the back of relatively higher volumes.
Interestingly, this bounce occurred after retracing 62 percent of the last leg of rally from the lows of Rs 194 to a high of Rs 332 levels apart from the demand line of a 57-day old descending channel of log scale, adding more credibility to this bounce.
Hence, positional traders can initiate fresh longs and look for a target of Rs 290 levels but stop-loss will remain below Rs 237 levels.
Disclaimer: The views and investment tips expressed by investment 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.
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