Indian market hit a fresh record high on August 4 supported by a strong rally in the banking space. The Nifty50 hit a record high of 16,290 and the Sensex touched 54,465 levels during the day.
On the sectoral front, buying was seen in banks, finance, as well as power stocks, while profit booking was visible in telecom, realty, consumer durables, and FMCG stocks.
On the broader markets front, the S&P BSE midcap and smallcap index fell 1 percent each, underperforming the benchmark indices.
Stocks that were in focus include ICICI Bank which closed with gains of over 3 percent, and State Bank of India rose by about 2 percent on Wednesday.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking Ltd, recommends investors should do with these stocks when the market resumes trading today:
Within the private sector heavyweights, ICICI Bank has shown a relative outperformance to its peers in the recent past. The stock continues to be in an uptrend as it has been forming a ‘Higher Top Higher Bottom’ structure.
With banking space regaining momentum in the last couple of sessions, we expect this stock to continue its uptrend and hence, traders should trade with a positive bias in this counter.
The immediate support is placed in the range of Rs 690-Rs 700 while resistance is seen around Rs 735-Rs 740.
This stock has consolidated in a narrow range in the last one month and on the higher degree charts, this consolidation just seemed to be a time-wise correction within an uptrend.
Post the announcement of its quarterly results, the stock rallied higher and has resumed its uptrend. The up-move has also been supported by good volumes which should provide an impetus for its northward journey.
Traders should continue to ride the trend until any reversal signs are seen. The immediate support is now placed around Rs 445-Rs 440.
Since prices are in uncharted territory, trailing stop-loss higher with up move in price will be the best method to ride the trend.
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.
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