The Indian market was off to a good start on Thursday as domestic equity benchmark indices opened with almost one per cent gains amid improved sentiment. The broader Nifty50 opened above 16,100, while the Sensex rose by nearly 400 points to start the day at 54,146.68.
The rally comes amid softening of oil prices, FIIs repositioning its stance in the Indian market and positive cues from Asian and global markets.
Titan led the barometer indices, surging by over six per cent in the opening trade. Strong buying was also seen in Consumer Durables, Realty and auto stocks, while buying also returned in midcap and small cap stocks.
Meanwhile, certain stocks came in focus on Wednesday. These stocks were Tube Investment, Saregama and Oil India.
Here is what Santosh Meena, Head of Research, Swastika Investmart Ltd suggests investors should do with these stocks:
Tube Investment of India
The counter is in a classical uptrend where it is breaking out of symmetrical triangle formation after a long period of consolidation which is propelling fresh bullish momentum in this counter. On the upside, 2025 is the previous swing high resistance; above this, it is likely to head towards the 2200 level. On the downside, 1900-1850 will now act as a strong and immediate demand zone.
The counter is in a strong uptrend, however, it is in a consolidation phase for time being. On the upside, 440 is an immediate and critical hurdle as a cluster of key moving averages while it has to cross the 500 level to gain momentum for the next leg of the rally. On the downside, 350 is an immediate and strong base while 300 is major support at any correction.
There is a complete reversal in the trend where 169 is a critical support level; below this, it is vulnerable to head towards 150/135 levels. The overall structure is weak, however, intermediate pullback can’t be ruled out after a vertical fall. Traders should look for exit opportunities at any pullback rally. On the upside, 200-210 will act as a strong supply zone at any recovery.