Vikas Jain Reliance Securities
On October 18, benchmark indices were seen moving to new highs on the back of IT, metal, banking-financial and select FMCG stocks. Yesterday’s trading showed an uptrend for the seventh consecutive day. The Sensex closed at 61,765.59 yesterday with a gain of 459.64 points, or 0.75 per cent. At the same time, Nifty closed at 18,477 with a gain of 138.50 points or 0.76 per cent.
Yesterday, along with the big stocks, small-medium stocks also rose. The Nifty midcap was up 1.17 per cent. At the same time, the smallcap 100 index was up 0.7 percent.
The aluminum company NALCO was in focus in yesterday’s business. It touched its multi-year high in intraday. At the end of trading, the stock closed at Rs 121.70 with a gain of 13.10 per cent. Similarly, Tata Power was the biggest gainer in the F&O segment. It touched a record high of Rs 264.85 in intraday and closed at 257.30 with a gain of 15.59 per cent at the end of trading.
Nifty will soon see the level above 19200, bet on metal-banks and NBFCs: Vinay Rajani
Similarly, the state-run bank Punjab National Bank was the top gainer of Bank Nifty yesterday. It touched an intraday high of Rs 48.20 yesterday and closed at 46 with a gain of 8.11 per cent at the end of trading.
Let’s know from Vikas Jain of Reliance Securities, now what should be your investment strategy in these stocks
NALCO
With the rise in aluminum prices across the globe, the stock has given a 10 year break out with huge volumes. Now it seems that in the range of Rs 132-142 it may see some fatigue. This level is its all-time high achieved in 2008. If there is a fall around Rs 109, there will be a good opportunity to buy in this stock. Those who have this share should stay in this stock with a target of Rs 135.
Tata Power Company
The stock has been one of the worst performing stocks in the power sector after exiting the four-month range. Stay on this stock with a trailing stoploss of Rs.210. Take some profit after getting the level of Rs 300-320 on the upside. Hold for target of Rs.320.
Punjab National Bank
The stock has been one of the biggest underperformers in the banking sector. It is now trying to come out of its consolidation range. There is a mild resistance for it around Rs 50, which is its average of 34 months. The continued momentum in the stock may continue further. On the upside, this stock can also touch the level of Rs 55 in the next few months. Those who have this share should stay with the target of Rs 55.
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