Trade Spotlight: Sun Pharma, CARE Ratings and Alok Industries in focus

Indian market rose for the third consecutive day in a row on November 4 pushing the Nifty50 beyond 11,900 levels towards the close.

A look at the final tally on D-Street on November 4 – the S&P BSE Sensex rose 355 points to 40,616 while the Nifty50 closed 95 points higher at 11,908.

Sectorally, the action was seen in the energy, IT, consumer durable, healthcare, and capital goods space while profit-taking was seen in realty, telecom, metal, and power stocks.

Stocks like Sun Pharma rose nearly 4 percent, CARE Ratings rallied by about 20 percent, and Alok Industries closed with gains of about 5 percent on Wednesday.

We have collated views of experts on what investors should do when the market resumes trading on 5 November:

Expert: Ashish Chaturmohta, Head of Technical and Derivatives, Sanctum Wealth Management

Sun Pharma: Rally towards Rs 565 is possible

For the last couple of months, the stock was in a corrective downtrend. But, in the last couple of sessions, it has seen a rally from lower levels. The stock bounced back from 38.2% Fibonacci retracement of the rise 312-565 and 200-day moving average.

But, it looks like it is facing resistance at the falling resistance trend line of the corrective decline. Thus, if it sustains above 510 levels, the stock can rally towards 565 and then towards Rs 600 levels. On the downside, supports are seen at 485 and then 470.

CARE Ratings: Stock can move towards 415-450 levels

The stock has seen a strong bounce back from lower levels on the daily chart. It has seen gap-up opening with strong momentum and closed above the 21-day exponential moving average which has been acting as support and resistance for the stock.

Thus, in the current rally, stock can move towards 415 and then 450 levels. On the downside, support is seen at 340-330 levels.

Alok Industries: Stock can rally towards 27-28 levels

The stock has been in a major downtrend from the high of 55 to a low of 18.65. It has found support near its 200-day moving average (200 DMA) and is consolidating above it for the last 4 weeks in a narrow range of 25-20.

Thus, if it sustains above the 200-DMA, the stock can rally towards 27-28 levels on the upside and then possibly 34. While on the downside, a break below 20 levels, the stock can decline towards 15-13 levels.