The Indian market snapped a three-day losing streak on Monday to end up more than 0.5%. The broader Nifty50 gained 83 points or 0.53% to close at 15,835, while the Sensex gained 326 points or 0.62% to settle above 53,234.
In the broader market, Nifty midcap and smallcap rose 0.69% and 0.64% respectively on Monday.
FMCG and Banking stocks rose the most, while Metal stocks declined. Nifty FMCG gained 2.66%, while Nifty Bank, PSU Bank, Private Bank rose between 1.2% and 1.66% on Monday. Nifty Metal, IT, Pharma, Oil & Gas, Healthcare dragged the market through volatility. The automobile index fell too slightly by 0.17%.
“With support from bank stocks, the domestic market clawed back its opening gains as preliminary trade data for the first quarter pointed to strong credit growth. The shift in investor preference from growth stocks to value stocks is clearly visible, leading to sales in industries like IT,” said Vinod Nair, Head of Research at Geojit Financial Services.
As we head into the new earnings season, the market will focus primarily on quarterly numbers and updated guidance for the new fiscal year, he added.
Meanwhile, some stocks came into sharp focus on Monday. These stocks were Dilip Buildcon, JSW Steel and Jubilant Ingrevia. Dilip Buildcon gained more than 9%, JSW Steel fell almost 2% and Jubilant Ingrevia gained 6% on Monday.
Here’s what Jatin Gohil, technical and derivatives research analyst at Reliance Securities, suggests investors do with these stocks when the market resumes trading on Tuesday.
DILIP BUILDCON LIMITED – BUY
After a higher reversal level (i.e. a 75% drop from its peak level of Rs750), the stock tested its long-term demand zone (Rs178-190) and then experienced a smart recovery. Yesterday, the stock rebounded after consolidating in a narrow range with relatively higher volume.
Its main technical indicators gave a buy signal after a bullish divergence. This could drive the stock towards Rs232 initially and Rs246 thereafter. On the downside, the stock will continue to find support around its long-term demand zone. A new long position can be initiated at the current economic situation and during declines towards Rs200 for a probable rise.
JSW STEEL LIMITED – SELL
The stock saw a pullback from an upper-level reversal and repeatedly faced a hurdle around its 23.6% Fibonacci retracement level of the previous bearish move (Rs790-520), which was placed at Rs584. Its daily RSI reversed from the neutral 50 mark and gave a sell signal.
This could drive the stock towards Rs520 initially and Rs500 thereafter. On the higher side, the stock will continue to face hurdles around its 23.6% Fibonacci retracement level of the previous bearish move. A new short position can be initiated at the current conjuncture and bounce towards Rs570.
JUBILANT INGREVIA LIMITED – BUY
On July 4, 2022, the stock experienced a breakout from a bull flag pattern and reached a one-month high with relatively higher volume. Key technical indicators are in favor of the bulls on the medium and short term charts.
The stock has the potential to move towards Rs530 initially and Rs540 thereafter. On a downside, the stock will find support around its lowest bull flag level, which is placed at Rs473. A new long position can be initiated at current market conditions and on declines towards Rs490 for the desired stock.
(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.)