Bulls charged back strongly, pushing the benchmark indices higher by 3 percent on Tuesday, after Russia began pulling back its forces from the Ukraine border and eased global crisis over an imminent war.
The market recouped all its losses incurred over the past two days as all sectors joined the rally. There was more than 4 percent correction in the previous two sessions.
Nifty Bank, Auto, Financial Services, IT and Realty indices rallied 3-4 percent, while FMCG and Metal indices gained 2 percent each.
The BSE Sensex surged 1,736 points to close at 58,142, and the Nifty50 jumped 510 points to 17,352, while the Nifty Midcap 100 and Smallcap 100 indices climbed 2.86 percent and 2.5 percent respectively.
Stocks that were in action include Zee Entertainment Enterprises which was the third biggest gainer in the futures & options segment, rising 7.3 percent to Rs 267.55, and LIC Housing Finance which rallied 7.92 percent to Rs 387.
Hero MotoCorp was the fifth biggest gainer in the Nifty50, climbing 4.91 percent to Rs 2,778.65, but Manappuram Finance was the top loser in the F&O segment, declining 10.71 percent to Rs 127.60.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:
Albeit this counter is trading below its 200-day moving average, it seems to be consolidating, for the last couple of weeks, in a range of Rs 2,800 – 2,600 levels. Strong recovery from the lower end of the said trading zone in the last trading session is hinting that this counter is positioning itself for a breakout in course of time which will be confirmed at a close above Rs 2,800 levels.
In that scenario, a higher target of Rs 2,950 can be expected. However, the best buying opportunity is available only either on a close above Rs 2,800 or on the dip around Rs 2,650 levels with a stop-loss below Rs 2,620 levels.
Strong come back in the last session, after retracing 62 percent of its last leg of the rally from the lows of Rs 167 to Rs 378 levels, is hinting at a tradable bottom at Monday's low of Rs 248 levels.
Hence, if the stock sustains above Rs 250, then it can move to much higher levels with a target close to Rs 290 levels. Therefore, positional traders can adopt a two-pronged strategy of buying now and adding on dips in the zone of Rs 260 – 255 levels with a stop-loss below Rs 250 on a closing basis.
This counter seems to be in a medium-term downtrend as it is consistently falling from the June 2021 highs of Rs 542 levels. Moreover, it is facing resistance from the downsloping trend line which is in progress since June 2021.
However, the recent up move from the lows of Rs 329 to a high of Rs 408 is looking somewhat promising which is backed by strong momentum. Hence, sustaining above Rs 359 levels, it can initially head towards Rs 389 levels.
We advise profit booking close to Rs 400 levels and fresh buying should be considered only on a close above Rs 410 as that will confirm a fresh breakout.
This counter registered a breakdown below its strong support of Rs 139 levels in the current week. Hence, as long as it sustains below the said level then it should eventually head down towards its logical target of Rs 110 levels.
Therefore, fresh exposure should be avoided whereas any stuck-up trading positions should be squared off on pullback attempts if any towards Rs 139 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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