Indian market bounced back from lows on Tuesday pushing the Nifty50 back above 16,250 while the S&P BSE Sensex rallied by more than 100 points.
Sectorally, buying was seen in telecom, IT and banks, while selling pressure was seen in metals, public sector, realty and utilities.
Stocks that were in focus include Gland Pharma, which rose by over 4 percent to hit a fresh 52-week high, Bharti Airtel (rose nearly 4 percent), and Escorts (recorded gains of over 6 percent) on Tuesday.
Here's what Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:
Gland Pharma: Short-term traders can book profits
This counter appears to have registered a breakout after a brief consolidation for 3-weeks. However, on the weekly charts, it appears to be facing resistance from the upward sloping trend line, which is drawn by connecting the tops of 2508 and 3514.
Hence, to witness sustainable gains, it needs a fresh breakout above 4350 levels. Short-term traders should consider booking profits in the zone of 4300 – 350 levels.
Dips if any should be utilized to add fresh positions with a stop below 4040 levels. In case if it registers a strong close above 4300 by the end of this week, then the rally should extend towards the next target of 4600.
Bharti Airtel: Book Profits
This counter seems to be negotiating resistance around 623 levels. Moreover, on the weekly line charts, it registered a Double Top kind of formation around 600 levels which seems to have cleared in the current week.
Hence, going forward, it remains critical to sustain above 600 levels on a closing basis by the end of this week to retain positive bias.
As the current leg of the up move appears to have stretched on the upside with three consecutive weekly closes from the lows of 520 – 620, traders are advised to consider booking profits if this counter fails to register a close above 623 levels by the end of the day.
In case if it registers a fresh breakout above 623 then a higher target towards 680 can be projected but for those higher targets, a stop below 597 on a closing basis is advised.
Escorts: Buy on dips
This counter appears to have registered a fresh breakout on massive volumes from its consolidation range of 1230 – 1130 levels.
Moreover, a dip of the preceding three trading sessions from the highs of 1255 – 1187 levels in a single attempt is acting as some sort of confirmation for this breakout.
Therefore, dips can also be considered as an opportunity to create fresh longs. For time being traders are advised to adopt a two-pronged strategy of buying now and adding on dips into the zone of 1225 – 1210 and look for an initial target of 1330 levels.
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