Snapping three day-losing streaks, the Indian market ended higher by nearly one per cent on monthly derivatives expiry day on Thursday. The broader Nifty50 spurted 0.9% or 144 points, while Sensex added over 500 points or 0.94% to settle at 54,252.53. The recovery was broadly led by Banking and metal stocks.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Led by State Bank of India, Nifty PSU Bank closed higher by 3.16% as HDFC Bank, Axis Bank and ICICI Bank also led the recovery from the front. Tata Steel drove the rally on Nifty Metal index, which ended higher by 2.6% on Thursday, with over 5% gain. Nifty FMCG was the only index that settled with some cuts on Thursday. 

The broader markets too witnessed a decent recovery wherein both Midcap and Smallcap gained in the range of 0.9-1.7%. 

"We’re seeing respite in line with the global counterparts but participants shouldn’t read much into a single-day rebound. The buoyancy in the banking pack is certainly encouraging however Nifty needs a decisive break above 16,400 for any sustained recovery," said Ajit Mishra, VP - Research, Religare Broking Ltd.  

Meanwhile, certain stocks were in focus on Thursday. Torrent Pharmaceuticals closed higher by over 10%, Sequent Scientific dropped more than 11% and AIA Engineering gained 9% on the monthly derivatives expiry day.  

Here is what Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, recommends what investors should do with these stocks  

Torrent Pharmaceuticals  

The stock has given a strong breakout on the upside on Thursday. It was in the process of forming a base for itself for the last couple of weeks. This base formation has resolved on the upside today. On the way up, the stock has crossed multiple hurdles, which shows that the bulls are having upper hand on the counter. The volume as well as the momentum indicators are supporting the bullish breakout. Thus, we expect the counter to head higher towards 2987 & subsequently to 3100. 

Sequent Scientific  

The stock had attempted a bounce recently. However, it couldn’t sustain above its crucial daily moving averages. Over there, it formed a Popgun pattern on the daily chart & has broken down. The overall structure shows that lower levels are on the cards. If the near-term, if support zone of 100-99 breaks, then the stock can slide down to 92.  

AIA Engineering  

The stock has broken out from an Inverted Head & Shoulders pattern today. The pattern is spanning over several weeks, which increases its bullish significance. The breakout is being supported by strong volumes, which validates the breakout. The daily & the weekly momentum indicators are in sync with the bullish stance. Thus, the stock looks set to test its all-time high of 2234.