Trade Spotlight | Your game plan for India Cements, Tata Consumer, Indian Hotels today

Expert suggests strategy for these top 3 stocks

The market is expected to consolidate in the 21,500-21,850 range in near term, though there was strong rebound on January 4 after two days of downfall, experts said, adding that the decisive climb above previous record high can open doors to reach 22,000 but below 21,500, there may be steep fall towards 21,300.

On January 4, the Nifty 50 rallied 141 points to 21,659, and the BSE Sensex jumped 491 points to 71,848, while the Nifty Midcap 100 and Smallcap 100 indices reported strong performance after consolidation, rising 1.7 percent and 1 percent.

Stocks that recorded better performance than the broader markets on Thursday included India Cements, Tata Consumer Products, and Indian Hotels. India Cements surpassed its Rs 275 hurdle intraday but could not sustain above the same, which seems to be crucial for further sharp upside, and finally settled at Rs 273, the highest closing level since October 10 last year, up nearly 4 percent. The stock has formed long bullish candlestick pattern on the daily charts with robust volumes and traded above all key moving averages (20, 50, 100, and 200-day EMA - exponential moving average).

Tata Consumer Products jumped 3.7 percent to end at record closing high of Rs 1,125.55 after three-day consolidation and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes. The stock remained in higher highs, higher lows formation for several months now and traded above all key moving averages.

Indian Hotels extended uptrend for third consecutive session after several days of consolidation and rallied 2.5 percent to end at record closing high of Rs 462.80 on the NSE. The stock has formed bullish candlestick pattern on the daily scale with above average volumes, and traded above all key moving averages.

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

India Cements

The counter has given a breakout of its Symmetrical Triangle chart pattern with a strong bullish candlestick. Moreover, on the daily charts, it has formed a higher bottom formation, therefore the structure of the counter indicates further bullish momentum from the current levels.

Unless it is trading below Rs 260, positional traders can retain an optimistic stance and look for a target of Rs 292.

Tata Consumer Products

After the robust rally on the daily scale, the stock went into the consolidation mode. However, the recent breakout in the stock is representing a bullish continuation pattern signifying a new leg of up move from the current levels.

For positional traders, Rs 1,080 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 1,200. However, if it closes below Rs 1,080 traders may prefer to exit from trading long positions.

Indian Hotels

The stock has given a breakout of its triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates further bullish momentum from the current levels.

For the traders, Rs 445 would be the key support level to watch out. Above which the uptrend structure will continue until Rs 495.