Indian market rose sharply on Wednesday but weak global cues could spoil the party for the bulls on Thursday. The Nifty50 reclaimed 11,600 levels while the S&P BSE Sensex rallied more than 250 points on Wednesday.
Let’s look at the final tally on D-Street for Wednesday – the S&P BSE Sensex was up 258 points to 39,302 while the Nifty50 was up 82 points to close at 11,604.
Sectorally, the action was seen in the realty, auto, healthcare, and IT stocks while profit-taking was visible in utilities, telecom, public sector, and power stocks.
Stocks like M&M rallied over 4 percent, Radico Khaitan gained nearly 6 percent, Man Industries jumped more than 17 percent, and Paushak closed with gains of nearly 13 percent.
We have collated views of experts on what investors should do when the market resumes trading on Thursday, 17 September:
Expert: Ashish Chaturmohta, Head of Technical and Derivatives, Sanctum Wealth Management
M&M: High volumes indicate accumulation at lower levels
The stock was in a major downtrend from the high of Rs 993 in August 2o18 to a low of Rs 245 in March 2020. Since then, the stock has been in an uptrend forming a higher top and higher bottom on the daily charts.
High volumes indicate accumulation at lower levels. In the last month and a half, the stock has been trading in a sideways range of Rs 656-595 odd levels and is consolidating.
If the stock trades above Rs 595, the stock is likely to give a breakout above Rs 656. The rally could extend towards Rs 710 and Rs 740 levels. On the downside, a break below Rs 595 levels, the stock could slip towards Rs 540 and then towards Rs 500 levels.
Radico Khaitan: Stock can cross its all-time high of Rs 499
Over the last 1-year, the stock has been consolidation between Rs 450 and Rs 250 odd levels. It has formed a bullish bottom pattern on the weekly charts.
It has given a breakout on the upside with strong momentum and high volumes indicating buying participation in the stock.
Looking at the broader chart pattern and current momentum, the stock can cross its all-time high of Rs 499 and then rally towards Rs 560-575 levels. On the downside, the support is seen at Rs 440 and then towards Rs 420 levels.
Man Industries: Rally could extend towards Rs 80 and then towards Rs 95 levels
The stock was in a downtrend from the high of Rs 161 in January 2018 to a low of Rs 30 levels. The stock has been consolidating between Rs 70 and Rs 30 odd levels for the last 18 months.
It has given a breakout on the upside with strong momentum and high volumes indicating accumulation at levels.
The price has crossed the 200-week moving average after almost a long time. Now, it is sustaining above Rs 67 levels, and can rally towards Rs 80 and then towards Rs 95 levels. On the downside, the immediate support is seen at Rs 67 and then Rs 58 levels.
Paushak: high volumes that indicate buying participation in the stock
For almost 2 years, the stock was consolidating between Rs 3320 and Rs 1600 odd levels. In late July, the stock saw a breakout on the upside with strong momentum and high volumes that indicate buying participation in the stock.
Since then, the stock has been range-bound between Rs 4500 and Rs 3600 odd and consolidating its gains.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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