The market gained for the first time in the last four straight sessions, though there was volatility, and closed third of a percent higher on Tuesday, backed by buying in metal, pharma, auto, banking and financial stocks.
The BSE Sensex climbed 187 points to close above 57,800 and the Nifty50 jumped more than 50 points to settle the session above 17,260. However, there was a selling pressure in the broader markets as the Nifty Midcap 100 index fell 0.7 percent and Smallcap 100 index declined 1.7 percent.
Stocks that were in focus include Tata Steel which was the biggest gainer in the Nifty50, rising 3.09 percent to Rs 1,219.60, and SRF which was the third biggest gainer in the futures & options segment, climbing 3.28 percent to Rs 2,531.30.
Birla Cable was also in action, which gained 17.34 percent to close at Rs 118.75 and Skipper which rose 9.85 percent to Rs 79.20.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:
This counter seems to be in a corrective and consolidation process after hitting new lifetime highs of Rs 2,680 in January. Considering the strong move of the last trading session, it can be presumed that this counter is positioning itself to test its life highs of Rs 2,680 and can break into uncharted territories as well.
Therefore, there can be a trading opportunity and one can buy it with a stop-loss below Rs 2,429 and look for an initial target of Rs 2,680 levels.
Strong price appreciation on the back of huge volumes is hinting that this counter is positioning itself for a fresh breakout which will be confirmed at a close above Rs 123 levels. In that scenario, much bigger upsides cannot be ruled out but the initial target will remain around Rs 151 levels.
Therefore, positional traders are advised to adopt a two-pronged strategy of buying now and on dips into the zone of Rs 109 to Rs 106 levels but stop-loss for this trade will remain below Rs 98.
This counter seems to have registered a fresh breakout from the 29-week downsloping channel. Price surge of the last session on the back of relatively higher volumes can be pointing at the beginning of the new leg of rally.
However, initial hurdles can be placed in the zone of Rs 84–88 and once the supplies present in this zone are absorbed then it should head higher to test its lifetime highs. Dips can be an attractive option to buy into this counter with a stop-loss below Rs 70.
This counter appears to be in a counter-trend rally as the medium-term trend looks down with lower tops and lower lows since August 2021.
The current pullback move is likely to face critical resistance from the down sloping trend line which it needs to clear with a close above Rs 1,250 which should confirm a breakout in this counter paving the way for a bigger and sustainable upswing.
For time being, we advise traders to book profits around Rs 1,240 and wait for a breakout.
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.
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!
