Benchmark indices closed with gains of over 1 percent each on Wednesday for the third consecutive day in a row pushing Nifty50 above 14800 while Sensex also climbed above 49000.
Sectorally, buying was seen in banks, finance, auto, and telecom stocks while mild profit booking was visible in realty, metals, and healthcare space.
Stocks that were in focus include Bajaj Finance which closed with gains of over 8 percent and was the top Nifty gainer, TVS Motors which hit a fresh 52-week high post Q4 results 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:
Bajaj Finance – Hold
The stock price had seen a price-wise correction in the last two months wherein it corrected from the all-time high of Rs 5,822 to the swing low of Rs 4,362.
In this correction, the stock managed to find support near its 200-days moving average and has resumed its positive momentum. The up move is supported by good volumes and hence, we expect the uptrend to continue in the near term.
Hence, traders are advised to continue to hold the stock and use intermediate declines as buying opportunities. The immediate supports for the stock are placed around Rs.5000 followed by Rs 4850 whereas resistance is seen around Rs 5650-5700.
TVS Motor – Hold
On the back of the results, the stock opened with a gap-up and witnessed a follow-up buying with good volumes. The daily, as well as weekly momentum, has turned into a buy mode, and hence, we could see a further up move in the short to medium term.
Hence, it is advisable to continue to ride the trend and use corrective moves as a buying opportunity.
The support for the stocks is placed in the range of Rs 620-600 whereas it has the potential to continue this momentum up to Rs 680-700 in the near term.
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.
