The Indian market closed in the green on Wednesday for the second day in a row. The S&P BSE Sensex rallied over 600 points while the Nifty50 closed above the 17450 levels.
Sector-wise, buying was seen in autos, consumer durables, metals and banking stocks, while some selling was seen in the oil and gas space.
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Stocks targeted include Rain Industries which closed with gains of over 5%, BSE rose almost 8% and Coal India closed with gains of over 5.5% on Wednesday.
Here’s what Santosh Meena, Head of Research at Swastika Investmart Ltd, recommends investors do with these stocks when the market resumes trading today:
Rain industries: buy
The counter comes out of a long consolidation with high volumes. The overall structure is very bullish as it mostly deals with the large moving averages.
The stock breaks out of the Triangle formation. It has created a solid base at 200-DMA around 216 levels. On the upside, 255 is immediate resistance where it may see a break, but above that it is likely to head towards 280 levels.
On the other hand, Rs. 210 is a major support to any correction while 190-192 is the next critical demand area. The MACD and RSI support the strength of the current move.
The counter has a strong bullish setup where it made a base at 100-DMA and then witnessed a breakout with strong volume. We expect a level of 2500 in the short term.
On the other hand, Rs 2000 will act as a strong support level. Momentum indicators are well positioned to support the current strength.
Coal India: hold
The stock is bottoming out with a bullish head and shoulders reversal formation with the rise in volume. The stock is facing resistance at the Rs. 170 level; above, we expect a move towards the 182 level.
On the other hand, Rs. 158 is a major support level to any correction while 155 is the next critical support level. Momentum indicators are well positioned to support the current strength.
(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)