Indian market witnessed profit booking decline on Thursday but Nifty managed to hold onto crucial support levels. The S&P BSE Sensex was down more than 300 points while Nifty50 held on to 11,100 levels.
Sectorally, the action was seen in healthcare, IT, and realty stocks while profit booking was visible in the public sector, oil & gas, and telecom. The NiftyBank closed nearly 2 percent lower at 21,646.
Stocks like Wipro, Divi’s Laboratories, IOC, BPCL, and Dabur India were in focus on Thursday.
We have collated views of experts on what investors should do when the market resumes trading on Friday, 31 July:
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Wipro: 270 should be the trend decider level for the bulls
On July 30, the stock made a fresh 52–weeks high of Rs 286.80. In this month alone, the stock has rallied by over 30 percent. The important point is that it not only surpassed its previous 52-week high of 261 but comfortably managed to sustain above the same.
The V-shaped uptrend rally surprised most of the traders as well as investors. On the daily and weekly charts, the stock has formed a breakout continuation pattern, which is grossly positive for Wipro.
However, on the short term time frame, the momentum indicators suggest that the stock is in an overbought zone and high chances of quick short term price correction is not ruled out if stock trades below 270.
For the next few trading session, 270 should be the trend decider level for the bulls. If it sustains above Rs 270, we can expect a continuation of the uptrend towards 295.
Further uptrend may also continue which could lift the stock towards Rs 305, and on the flip side, dismissal of 270 could possibly trigger short-term correction up to 255.
Divi’s Lab: For the swing traders, 2450 should be the sacrosanct level
The stock has rallied near 6 percent on July 30. On Thursday, the stock opened with a gap-up and quickly surpassed 2450 resistance mark with strong volume activity.
Despite the weak market conditions, Divis Lab maintained its strong momentum throughout the day. On the short term time frame, the stock has formed a strong price volume breakout pattern.
The texture of the pattern suggests that the breakout action will continue in the near term if the stock succeeds to trade above 2450 level.
For the swing traders, 2450 should be the sacrosanct level. Trading above the same, we can expect uptrend continuation wave up to 2800.IOC: 84 should be the key level to watch
Post a quick pullback rally from 75 to 95, the stock is witnessing a narrow range activity. However, on the daily chart, the stock has formed a higher bottom series pattern along with positive SAR series on the weekly charts that indicates the uptrend is likely to continue in the near-term.
In addition, on the monthly charts, the stock has formed a ‘Hammer’ kind of strong reversal formation. And, post reversal, the stock has registered a modest volume activity near the important support levels, which indicate high chances of fresh uptrend wave from current levels.
In the short run, 84 should be the key level to watch, and if the stock manages to trade above the same then we can expect uptrend continuation towards 100.
BPCL: For the next few trading sessions, 400 should the make or break level
The stock has been consistently forming higher bottom series formation. The series of higher bottom formation suggest the stock is into the strong uptrend and this wave is likely to continue in the near-term.
Post the strong uptrend rally from 365 to 375, currently, the stock is witnessing profit booking. In this week, the stock is down by nearly 7 percent.
However, the medium-term texture of the BPCL is robust and any meaningful correction should be the opportunity for traders to add long positions near support levels.
Moreover, the stock is currently hovering near 200-Day SMA and is trading near an important retracement level of 410.
For the next few trading sessions, 400 should the make or break level for the positional traders, and if it sustains, we can expect a continuation of uptrend towards 480. On the other side, dismissal of 400 could possibly trigger short term correction up to 370.
Dabur India: For the bulls, 500 would be the important breakout level to watch
On the daily chart, the stock has formed an expanding Triangle kind of formation. Post that formation, the stock is hovering in the range of 450 to 500.
The short term texture of the Dabur looks like Cat on the wall. Currently, the stock is witnessing a non-directional activity. Perhaps, traders are waiting for either side breakout.
For the bulls, 500 would be the important breakout level to watch. And if, the stock manages to close above the same, we can expect quick uptrend rally towards 518.
On the flip side, trading below 465 may increase further weakness up to 435.Disclaimer
: The views and investment tips expressed by 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.