Indian markets succumbed to profit-booking on September 20 amid weak global cues. At close, the Sensex was down 524.96 points, or 0.89 percent, at 58,490.93, and the Nifty was down 188.30 points, or 1.07 percent, at 17,396.90.
The correction in broader markets was more intense as the BSE Midcap and Smallcap indices fell 1.8 percent each, while the volatility increased significantly with India VIX climbing nearly 15 percent to 17.5.
Stocks that were in focus included Apollo Pipes which rallied 7.5 percent to close at Rs 1,655.6. Hindustan Unilever, which was the biggest gainer in the BSE Sensex with a 2.84 percent rally. On the other hand, Tata Steel was the biggest loser in the BSE Sensex, down 9.5 percent.
Here’s what Vikas Jain, Senior Research Analyst at Reliance Securities recommends investors should do with these stocks when the market resumes trading today:
Apollo Pipes
The stock scaled a record high crossing its previous peak highs near to Rs 1,200 levels, and moved higher by 33 percent from its previous high.
We believe it has completed its bullish stance over the past eight weeks and expect it to underperform or witness a corrective action from current levels.
We would recommend booking profit as higher volumes are lacking in the current momentum.
Hindustan Unilever
The stock has started to outperform after a long time in the current quarter with positive momentum in the sector.
On the downside, the stock has support near to Rs 2,650 levels with respect to its previous top term which would act as strong support now.
We would recommend holding the stock. The current upmove can lead the stock higher near to Rs 3,000 levels.
Tata Steel
The stock has witnessed sharp profit booking after a Head and Shoulder pattern breakdown on weekly charts.
The sector has been underperforming in the current upmove and has declined by 5 percent compared to 12 percent upmove in the Nifty.
It has closed at strong support of its 100-day average and we expect some bounce back. We would recommend holding the stock which has a target of Rs 1,320.
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