Here’s what Vikas Jain of Reliance Securities recommends investors should do with these stocks when the market resumes trading today
Nifty50 hit fresh highs for the second consecutive day in a row on Monday. Benchmark indices closed with gains of about 1 percent while the broader market indices underperformed.
Sectorally, the rally was seen in energy, metal, telecom, and oil & gas stocks while some profit-taking was seen in IT and auto space.
Stocks that were in focus include PNB Housing which rallied 20 percent to hit a fresh 52-week high, Solar Industries (up 11 percent), and Redington India (up nearly 20 percent). All three stocks hit a fresh 52-week high on Monday.
Here’s what Vikas Jain, Senior Research Analyst, Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
The stock has given a multi-year breakout and scaled to an all-time high with strong volumes - one of the highest in the last 10 years post its quarterly results.
We believe that the up move would get extended for a higher target of Rs 1700 from current levels, and any decline or retracement to fill the gap area of Rs 1340-1365 levels should be used as an opportunity to add longs.
The stock crossed its 100-week average after a gap of three years with positive news flow and the price up move confirms the long-term uptrend.
The intermediate high of Rs 575 could act as a minor resistance and a crossover of the same would signal a higher target in the coming quarters.
On the downside, the stock has strong support near the Rs 475 levels, and its previous top would now become support now.
The stock has moved up by 40 percent over the last two days, which indicates that there could be some moderation from the current levels.