The Indian market snapped three-day losing streak on Monday to end higher by more than half per cent. The broader Nifty50 gained 83 points or 0.53% to close at 15,835, while the Sensex gained 326 points or 0.62% to settle above 53,234.
In the broader market, Nifty midcap and smallcap rose higher by 0.69% and 0.64% respectively on Monday.
FMCG and Banking stocks gained the most, while Metal shares declined. Nifty FMCG gained 2.66%, while Nifty Bank, PSU Bank, Private Bank rose between 1.2% and 1.66% on Monday. Nifty Metal, IT, Pharma, Oil & Gas, Healthcare dragged the market amid volatility. The auto index too marginally dropped by 0.17%.
“With support from banking stocks, the domestic market recouped its opening gains as provisional business data for Q1 indicated strong credit growth. Changing investor preference from growth to value stocks is clearly visible, resulting in selling across sectors like IT,” said Vinod Nair, Head of Research at Geojit Financial Services
As we step towards the new earnings season, the prime focus of the market will turn towards quarterly numbers and updated guidance for the new financial year, he added.
Meanwhile, certain stocks came in focus on Monday. These stocks were Dilip Buildcon, JSW Steel and Jubilant Ingrevia. Dilip Buildcon gained more than nine per cent, JSW Steel declined nearly two per cent and Jubilant Ingrevia gained six per cent on Monday
Here is what Jatin Gohil, Technical & Derivative Research Analyst at Reliance Securities, suggests investors should do with these stocks when the market resumes trading on Tuesday.
DILIP BUILDCON LIMITED – BUY
After a higher level of reversal (i.e. 75% fall from its peak level of Rs750), the stock tested its long-term demand zone, (Rs178-190) and later witnessed a smart recovery. Yesterday, the stock bounced after a narrow range consolidation with relatively higher volume.
Its key technical indicators gave a buy signal post bullish divergence. This could lead the stock towards Rs232 initially and Rs246 subsequently. In case of any decline, the stock will continue to find support around its long-term demand zone. A fresh long position can be initiated at the current juncture and on dips towards Rs200 for a probable rise.
JSW STEEL LIMITED – SELL
The stock witnessed a pullback post higher-level reversal and multiple times faced hurdle around its 23.6% Fibonacci Retracement level of prior down move (Rs790-520), which was placed at Rs584. Its daily RSI reversed from the neutral mark-50 and gave a sell signal.
This could drag the stock towards Rs520 initially and Rs500 subsequently. On the higher side, the stock will continue to face hurdles around its 23.6% Fibonacci Retracement level of prior down move. Fresh short position can be initiated at current juncture and on bounce towards Rs570.
JUBILANT INGREVIA LIMITED – BUY
On 4th Jul’22, the stock witnessed a breakout from a bullish flag pattern and rose to 1-month high with relatively higher volume. The key technical indicators are in favor of the bulls on medium-term as well as short-term timeframe charts.
The stock has potential to move towards Rs530 initially and Rs540 subsequently. In case of any decline, the stock will find support at around its lowest level of bullish flag, which is placed at Rs473. Fresh long position can be initiated at current juncture and on dips towards Rs490 for desired action.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)