ga5nedThe buying in Reliance Industries, technology stocks, PSU banks and select auto stocks helped the market close higher on October 8 continuing the uptrend for the second consecutive session. The dovish policy measures by the RBI also supported the market.
On October 8, the BSE Sensex closed above the 60,000-mark again with 381 points gains while the Nifty50 gained more than 100 points to close nearly 17,900 levels. The broader markets also joined the rally as the Nifty Midcap 100 index was up 0.43 percent and Smallcap 100 index gained 1.23 percent.
Stocks that were in focus included Polycab India, which closed 4.55 percent higher at Rs 2,529.80, Affle India (hit 5 percent upper circuit to close at record high of Rs 1,212), Chemplast Sanmar (gained 7.81 percent gains at Rs 801.75), and Tata Consultancy Services (closed with 1.1 percent gains at Rs 3,935.65).
Here’s what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends investors should do with these stocks when the market resumes trading today:
TCS is one of the leading IT giant in India and has been trading in a strong uptrend. There is no sign of weakness so far in any time frame.
At this point in time the stock has a resistance at the psychological level of Rs 4,000. A sustainable move above the same might bring the stock towards Rs 4,200 and more.
On the downside support is at Rs 3,700. Investors should keep holding the stock from here on.
Given here is the weekly line chart of Polycab which depicts that the stock has rallied one side from the bottom of around Rs 620 towards the recent top of Rs 2,627 without any meaningful correction.
The stock has rallied almost 4x and it seems a bit exhausted. There is a possibility of some consolidation in the coming weeks. Thus traders should refrain from having any heavy positions in the stock.
While investors can continue to hold the same till the time there is clear change of trend. On the levels front, Rs 2,300-2,700 might be the range going ahead.
It’s newly relisted stocks and that is the reason why we don’t have much historical data of Chemplast Sanmar. However the given hourly chart construes that the stock is rising with good momentum and might continue to do the same till the time it is trading above Rs 750 mark.
A move below Rs 750 would halt the momentum for time being. Traders should book longs at higher levels.
The stock is in strong up trend and recently it had a split in a ratio of 10:2. Now the stock is trading near Rs 1,200 mark. The adjusted all-time high of Affle is around Rs 1,250 mark. A daily close above the same might result in fresh buying traction.
We expect the stock to move towards Rs 1,400 or so once it sustain above Rs 1,250 mark. On the downside, support is placed at Rs 1,100.
It is a trend deciding support for short term. Investors should keep holding the stock while traders can look for fresh entry above Rs 1,250.
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