Indian market made fresh highs on Thursday pushing the Nifty50 beyond 16,300 while the S&P BSE Sensex surpassed 54,700 levels to hit a fresh high of 54,717.
On the sectoral front, buying interest was seen in telecom, metals, energy, IT, and FMCG while selling pressure was seen in realty, public sector and banks.
On the broader markets front, the S&P BSE Midcap index rose 0.10 percent, and the S&P BSE Smallcap index fell 0.43 percent – underperforming benchmark indices.
Stocks that were in focus include Tech Mahindra, which rose over 2 percent to hit a 52-week high, HCL Technologies (gained nearly 2 percent), and Sonata Software that gave up gains after hitting 52-week but closed 0.6 percent higher on Thursday.
Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
Post Rs. 1120 breakout confirmation, the stock has been soaring rapidly. The stock has rallied from Rs 1100 to Rs.1250 within a short period of time. The rally was price dominating and the volume activity has been modest.
On the daily and weekly charts, it has formed a strong price-volume breakout continuation formation which clearly suggests a further uptrend from current levels.
For the swing traders, Rs.1175 should be the trend decider level. We expect a continuation of the uptrend up to Rs.1300 -1325 as long as it trades above Rs.1175 levels. On the flip side, a close below Rs. 1175 would make the uptrend vulnerable.
After a strong uptrend rally from Rs.970 to Rs.1050, the stock took the resistance near Rs. 1050 and corrected sharply.
However, on daily and weekly charts, it has maintained a higher bottom formation which is broadly positive for HCL Tech Ltd. Further, the stock is comfortably trading above 20 and 50 day SMA with strong higher lows formation.
Unless it trades below Rs. 1000, positional traders retain an optimistic stance and look for an upside Rs. 1100-1150.
Fresh buying can be considered now and on dips, if any, between Rs. 1060 and 1040 levels with a stop loss below Rs. 1010.
On the daily charts, the stock has formed an uptrend continuation formation. On Thursday, the stock opened with a gap up and rallied over 9 percent but due to consistent selling pressure at a higher level erased all gains in the second half and finally close near the 815 level.
Currently, the stock is witnessing non-directional activity perhaps, traders are waiting for either side breakout confirmation. For the bulls, Rs. 850 would be the important breakout level to watch.
And if, the stock manages to close above the same, we can expect a quick uptrend rally towards 900-915 on the flip side, trading below Rs. 800 may increase further weakness up to Rs.775-750. 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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