Domestic equity markets fell on Monday as investors took profits after a two-day rise. The BSE Sensex fell 325.59 points, or 0.5%, to 64,933.87. The NSE Nifty dropped 82 points, or 0.42 percent, to close at 19,443.55.
Several Dalal Street hot stocks, including National Aluminium Company Ltd (Nalco), Grasim Industries Ltd, and NMDC Ltd, are expected to remain in the spotlight today. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, offers some thoughts on these equities ahead of the trading session on Wednesday.
On the daily chart, Grasim has formed a higher-bottom formation pattern, with support at about Rs 1,850 levels, indicating additional upside movement in the coming days. On the daily chart, the stock remained above its 50-day moving average. With solid volume involvement and the RSI indicator rising, the stock should continue to advance towards the Rs 2,100 mark. One might 'buy' the stock with a stop loss of Rs 1,850 for an upside objective of Rs 2,800.
Nalco's share price fell from a 52-week high of Rs 105. It reached a low near its 200 DMA of Rs 87. On the daily chart, it has formed a double bottom formation pattern around those levels. The stock is recovering, and with the RSI showing a trend reversal for a 'buy,' the stock is appealing and has the potential for more higher movement in the coming days. Buy the stock with an upside objective of Rs 105 and a stop loss of Rs 87.
Since the Rs 125 level, NMDC has been on a roll. With increased volume involvement in recent days, it has already closed above the prior peak level of Rs 164. Furthermore, the stock is trading above all of the major moving averages. The RSI is high and on the rise. One can anticipate a big upward movement to around Rs 200. Purchase the stock with a stop loss of Rs 162.
