Ending six-day losing streak, the Indian market ended with nearly half per cent gains amid positive cues from global markets on Monday. Broader Nifty50 rose 0.37% and Sensex gained 0.46% in the closing trade, putting a halt to the long stretch of negative closings. The former gained 57 points and the latter added 237 points to settle at 15,350 and 51,598 respectively.
However, small cap and midcap stocks came under tremendous selling pressure as Nifty midcap and smallcap indices closed with over 2.2% and 3.2% cuts on Monday.
On the sectoral front, FMCG and IT gained 1.8% and 0.8% respectively as all other indices ended with marginal gains or cuts in a volatile market.
“Positive trends in the global markets inspired domestic market to trade positively with large caps gaining the most while mid & small caps continued to trade with cuts. However, prevailing inflationary pressure and concerns over policy tightening limited the upside,” said Vinod Nair, Head of Research at Geojit Financial Services.
Among the sectors, metals were the top laggard due to a sharp fall in commodity prices along with a fall in global & domestic demand, the expert added.
Meanwhile, certain stocks came in focus on Monday. These stocks were ITI, Pidilite Industries and Hindustan Unilever. ITI closed with over 12% gains, Pidilite gained more than 5% and Hindustan Unilver settled with nearly 4% gains.
Here is what Jatin Gohil- Technical and Derivatives Research analyst at Reliance Securities suggests investors should do with these stocks
Recommendation: BUY above 95 | Target: Rs109 | Stop Loss: Rs83 | Time Duration: 3-4 weeks
The stock formed higher bottom and formed a bullish engulfing pattern on the daily chart. Rise in volume signals that major market participants are in favor of the bulls.
The key technical indicators reversed from the oversold zone and they are positively poised. A follow-up move could take the stock towards Rs99-104-109. A fresh long position can be initiated only above Rs95 for a probable up-move.
Recommendation: BUY | Target: Rs2,280 | Stop Loss: Rs1,980 | Time Duration: 3-4 Weeks
The stock respected its upward sloping 100-week SMA, as it reversed after testing that moving average and breached its prior daily falling trend. Its daily RSI gave buy signal post a bullish divergence. The stock has potential to move towards Rs2,280. Fresh long position can be initiated at current juncture and on dips for the desired action. In case of any decline, its 100-week SMA will continue to work as a key reversal point.
Recommendation: BUY | Target: Rs2,410 | Stop Loss: Rs2,045 | Time Duration: 3-4 Weeks
Since apr’22, multiple times the stock reversed after testing Rs2,100-2,050 zone and moved higher. On the 20th June 2022, the stock visited that zone and resumed its up-move. Its daily RSI reversed after testing its bull market support zone (40-33 levels) and gave a buy signal. A follow-up move could lead the stock towards its prior swing high.
On the lower side, the stock will continue to find strong support around that zone.
(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.)