Among the sectors, auto gained 0.92%, pharma was up 1.23%, capital goods climbed nearly 1.14%, while IT was a laggard.
Stocks that were in focus include names like Tata Motors, which gained 1.79%, HAL, which was up 3.8% and Tata Chemicals, whose shares rose nearly 3% on Monday.
Here’s what Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today
Tata Motors – Buy
Continuing its prior daily rising trend, the stock surpassed its medium-term supply zone of Rs 525-535 and rose to a 6-year high of Rs 549.
Positive news flow in the stock and strength in the auto space supported the rise. The stock has the potential to test its lifetime-high of Rs 606.
The key technical indicators are positively poised on major time frame charts. Fresh long positions can be initiated at the current juncture and on dips for the desired action. Since March 31 2023, the stock moved higher, taking support of its 20-day EMA, which is currently placed at Rs 518.
HAL – Buy
On June 5, the stock witnessed a breakout from ascending channel pattern and registered a new lifetime high of Rs 3,326. Above-average volume and rise in future open interest indicate that major participants were in favour of the bulls.
The key moving averages are sloping upwards, which is signalling that the overall trend is bullish. This could take the stock towards its channel breakout point of Rs 3,800 in the short to medium- term (1-3 months).
In case of any decline, the stock may find support at around Rs 3,050.
Tata Chemicals – Buy
After a higher level of reversal (i.e. from Rs1,215 to Rs877), the stock respected its 20-month EMA and consolidated above that moving average.
As per the current set-up, the stock is poised for a range breakout, which could lead it towards Rs 1,140. The key technical indicators recovered after testing the bull market support zone and were positively poised.
On the lower side, the stock will continue to find support at around its 20-month EMA, which is currently placed at Rs 929.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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