The Indian market trimmed early losses to trade in the green. After declining by more than half per cent in the opening trade, the benchmarks made a smart recovery with Nifty 50 trading above 17,550 and Sensex adding more than 200 points minutes after the opening.  

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Earlier, the weakness largely came from IT sector with Nifty IT declining more than two per cent in the opening trade.  

The recovery was led by the broader market with Nifty Midcap gaining 0.9% and Smallcap nearly 0.8% around the same time.  

Meanwhile, certain stocks came in focus on Monday. These stocks were RattanIndia Enterprises, CCL Products and HPCL.  

Here is what Jatin Gohil, Technical & Derivative Research Analyst at Reliance Securities, suggest investors should do with these stocks.

RATTANINDIA ENTERPRISES LIMITED – SELL 
 
On 17th Aug’22, the stock bounced after an upward consolidation and extended gain subsequently. Yesterday, the stock rose to 1 ½ month high of Rs57 and settled around its upper band of the descending channel. In the past, the stock witnessed a substantial decline after testing that band. Its daily-RSI is positive and moved above 70-mark. Since Nov’21, four times its RSI reversed from 70-mark. 
 

In case history repeats itself, the stock may witness short-term decline, which could drag it towards Rs43-40 zone initially and Rs30-27 zone subsequently. However, a stable move above that upper band will invalidate short-term decline and support the stock to move further higher. 
 
CCL PRODUCTS (INDIA) LIMITED - BUY 
 
On 22 nd Aug’22, the stock bounced after testing its neckline of cup and handle pattern (placed at around Rs420) and jumped to almost 5-month high of Rs460. A substantial rise in volume indicates that major market participants were in favor of the bulls. 
The key technical indicators are positively poised on major timeframe charts. This could lead the stock towards its breakout point, which is placed at around Rs520. In case of any decline, the stock will continue to find support around its neckline. Fresh long positions can be initiated at the current juncture, as risk reward is favorable. 
 
HINDUSTAN PETROLEUM CORPORATION LIMITED - SELL 
 
After testing its point of polarity (placed at around Rs265), the stock witnessed a reversal. Its daily RSI reversed after testing bear market resistance zone (60-67) and gave a sell signal. As per the current set-up, short-term to medium-term decline cannot be ruled out. 
This could drag the stock towards Rs225 initially and Rs206 subsequently. In case the stock manages to surpass its point of polarity, probable decline will be negated. 

(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.)