Sectorally, buying was seen in IT, metals, banks, capital goods, and the public sector while marginal selling was seen in FMCG stocks.
Stocks that were in focus include names like
which fell by 0.6 per cent ahead of its results on Tuesday, Bharat Electronics which hit a fresh 52-week high and which saw a massive volume boost.
Here’s what Jatin Gohil, Technical and Derivative Research Analyst at Securities recommends investors should do with these stocks when the market resumes trading today:
Bharat Electronics: Profit booking
Continuing its prior daily rising trend, the stock tested its short-term supply zone of Rs 255-260 and erased partial intraday gain subsequently.
The key technical indicators reversed after testing the overbought zone on the near-term timeframe chart and on the verge of a bearish crossover.
As per the current setup, the near-term decline cannot be ruled out, which could drag the stock towards Rs 243-229-222.
However, a stable move above that supply zone will negate the near-term decline and may attract fresh buying interest.
HUL: Profit booking
The stock witnessed a smart recovery from its 52-week low of Rs 1,902 (i.e. rose 37% from that point) and rose to an almost 9-month high of Rs 2,605 subsequently.
The stock has outperformed its benchmark-Nifty and proved that it’s a strong defender. After such a stellar up-move, the stock is poised for a high-level reversal, as its daily RSI formed a bearish divergence around its overbought zone and massive call writing seen at the Rs 2,600 strike price option.
This could drag the stock towards Rs 2,430-2,320-2,210 in the short term. In case the stock stays firm above Rs 2,600, probable decline will be negated.
Ambuja Cements: Neutral
After a sharp recovery from its 52-week low of Rs 274 (i.e.42% rise from that point), the stock witnessed a minor decline subsequently.
Later, the stock oscillated in the narrow range (i.e. between Rs 355 and Rs 375). The key technical indicators are neutral on major timeframe charts.
We believe that either side’s breakout will set the trend. In case the stock manages to surpass its upper band of the range convincingly, this could lead it towards Rs 391-410-435.
However, violation of its lower band could drag the stock towards Rs 349 initially and Rs 340 subsequently.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)