witnessed a volatile session as it closed at 17749. A sell-off was triggered all around the sectors, led predominantly by IT and Financials. Although it cannot be termed as correction, at least till the time it is maintaining 'Higher High and Higher Low' pattern. We can certainly term it as Profit Booking (NASDAQ:
). Nifty nearly fell 280-290 points while Sensex tanked 990 points before it recovered by more than half in the last hour.
If we talk about the short term, based on the movement Nifty showed in the last hour, a Higher Low has been made at around 17595 for now. In the last hour, Nifty took support exactly from the 100 EMA and recovered nearly 170 odd points from Day Low. Based on the below pattern, one can go Long in Nifty with a Target of 18250 and Stop Loss of 17550.
Buy Maithan Alloys
Maithan Alloys Ltd (NS: MAIT ) was one of the many stocks that traded in the Green despite a massive Profit Booking today. If we look at the Fundamentals of the company, it is currently trading at Rs 1060, with a PE around 10, against an Industry PE of 15. The company's Book Value stands at Rs 523 and is almost Debt Free.
The company has performed consistently with 5-year CAGR at 24%, 5-year Stock Price CAGR at 37% and 5-year ROE of 25%.
If we look at the Technical aspect, its share price closed firm at 1060, with 3x volumes as of 20-day volumes. The stock price is currently trading above 20-50-200 EMAs. As per the daily trend shown in the below image, the stock is likely to show further strength. With a holding of around 6 months, the stock might reach Rs 1450, while the stop loss is to be maintained below Rs 900 on a closing basis.
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