Indian stock markets closed in the green on Monday for the second consecutive day in a row supported by a rally in banking and PSU stocks.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

“PSU Banks led the sectorial rally as reports suggested an increase in FPI limits while the realty sector followed the trend on robust sales numbers and expectations of support measures in the upcoming budget,” Vinod Nair, Head of Research at Geojit Financial Services, said.

See Zee Business Live TV Streaming Below:

Sectorally, apart from banking, buying was seen in capital goods, realty, auto, and public sector.

Stocks that were in focus include Alok Industries that closed with gains of over 12 per cent, Greaves Cotton closed with gains of nearly 20 per cent and Tata Tele rose 5 per cent.

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Alok Industries: Recommendation: BUY | Target: Rs 58.50

After a higher level of reversal (i.e. from 58.50 to 18.65), the stock found support around its 20-month EMA and later remained sideways for a couple of months.

The key technical indicators are positively poised on the medium-term timeframe chart. The stock has the potential to move towards Rs 44 initially and Rs 58.50 subsequently in the medium-term.

In case of any decline, the stock will again find support around its 20-month EMA.

Greaves Cotton: Recommendation: BUY | Target: Rs 295
Since 3rd January 2022, the stock witnessed a price-volume action, wherein it rose from Rs 138 to Rs 209.45.

Major moving averages are sloping upwards on short-term as well as medium-term timeframe charts. The key technical indicators are positively poised.

The stock has the potential to explore uncharted territory. This could lead the stock towards Rs240 initially and Rs295 subsequently.

Tata Teleservices: Recommendation: Profit booking

Continuing its prior daily rising trend, the stock recorded a new high of Rs276.35.

It was the twelfth consecutive daily upper circuit for the stock. Major moving averages are sloping upwards, while key technical indicators are stuck around their overbought zone.

From its lifetime low of Rs1.80 (March-2020), the stock witnessed a gigantic rise in a very short span.

Overall set-up is bullish, but risk-reward is not favorable for a fresh long position at the current juncture. However, investors can book partial profit here.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)