As much as 109 stocks rose to fresh 52-week highs on the BSE which include names like Disa India, Can Fin Homes, and Balkrishna Industries among others.
After a strong rally seen in the previous trading session, the S&P BSE Sensex ended the session on a flat note. But there was plenty of action in individual stocks which rose up to 17 percent.
As much as 109 stocks rose to fresh 52-week highs on the BSE which include names like Disa India, Can Fin Homes, Balkrishna Industries, BEML, Bajaj Finance, UPL, Gulf Oil Lubricants, LIC Housing Finance, Godrej Industries, and GIC Housing Finance.
Stocks like Hilton Metal rose 17 percent, followed by B L Kashyap which rallied 12 percent, Bharat Bijlee rose 10 percent and Roto Pumps surged 10.4 percent on Tuesday.
Even though stocks hitting fresh record highs came down slightly from previous trading session. Data suggests that 26 stocks on the BSE rose to fresh record highs which include names like VST Tillers, APL Apollo Tubes, Vinati Organics, Phillips Carbon Black, Power Grid, SpiceJet, and Maruti Infrastructure etc. among others.
The Nifty which made a bullish candle in the previous trading session held onto its crucial psychological support level of 9650. Although it rose in morning trade but has now pared gains.
The index is poised for a move towards 9,700 but there is a lot of resistance around that point because 67 lakh Call options contracts stand at strike price 9,700 followed by 9,800 (46 lakh contrasts), and 9,600 (36 lakh contracts).
The index might be trading in a narrow range but there was plenty of action in individual stocks. As much as 70 stocks on the NSE touched its fresh 52-week highs which include names like UPL, GMR Infrastructure, L&T Infotech, Tata Investments, Astral Poly, Phillips Carbon, NIIT Technologies, Swelect Energy, and Indian Hume Pipe.
The momentum is likely to strengthen further once it crosses Nifty record high placed at 9,709.30. Monday’s move negated the formation of lower top – lower bottom and given the upside breakout from its falling channel on the hourly scale.
“It was heartening to see Nifty rallying as a follow up to the positive chart formations developed in Friday’ trading session. After Monday’s price action our twin momentum oscillators generated buy signals,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“But, the only concern is that this rally is on the back of negative advance decline ratio. The real challenge for bulls remains in taking off the top placed at 9,709 and if that is conquered on closing basis then next targets can be projected around 9,830 levels,” he said.Mohammad further added that the bigger target looks quite possible if Nifty crosses the level of 9,709 before next 8 trading sessions. If that happens then it not only confirms the end of correction at the recent low of 9,560 but we can easily expect bigger targets going forward.