Indian market witnessed profit booking decline on Wednesday following muted trend seen in global markets. The S&P BSE Sensex, Nifty pared gains and turned negative towards the close of the trade.
The S&P BSE Sensex hit a record high of 48616 while Nifty50 hit a life high of 14,244 before bears took control of markets.
The S&P BSE Sensex fell 263 points to close at 48,174 while the Nifty50 was down 53 points to 14,146.
Sectorally, the action was seen in Utilities, metals, telecom, power while profit-taking was seen in energy, FMCG, IT, and healthcare.
Stocks like Amber Enterprises rose by about 10 percent, Vedanta rallied by over 6 percent, and Dixon Technologies closed with gains of over 3 percent.
We have collated views of experts on what investors should do when the market resumes trading on January 7:
Expert: Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking Ltd
This stock gave a breakout from its consolidation pattern in the month of August 2020. Since then, there’s no looking back and it has consistently moved higher with the formation of a ‘Higher Top Higher Bottom’ structure.
After some time-wise correction recently, the prices have now resumed their uptrend with good volumes and hence, the trend continues to remain firm.
Thus, traders and investors should continue to hold the stock and ride this trend with a stop loss placed below Rs 2400. The potential target for the stock in the near term is placed around Rs 2910.
Post the failed delisting in October, the price corrected sharply from Rs 126 to a low of about Rs.] 84. However, the stock has then recovered smartly and has in fact provided good returns in the last couple of months.
The up move in the overall metals space has also added fuel to this rally. Technically, the trend for the stock is positive and until there are any signs of reversal, one should continue to hold the stock and trade with a positive bias.
The immediate support for the stock is placed around Rs 166 whereas resistance is seen around Rs 200.
The stock has shown a gradual upmove and has continuously given positive returns in the last nine months. The corrective declines within this uptrend are getting arrested whenever the price approaches its ‘20 DEMA’ and the prices resume its uptrend from that support.
Hence, till this structure is intact, one should continue to hold the stock for further up move. Since, it is in unchartered territory, following a trailing stop loss method would be the best method to ride this trend.
The support is currently placed around Rs 13,100 and thus existing positions should be held with a stop loss placed below the mentioned support.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.