The last one year turned out to be a good period for the market as the benchmark indices still posted 20 percent return despite significant volatility seen since October 2021.
Strong earnings growth, low interest rate environment, easy liquidity availability, economic recovery hopes among other factors lifted market to record highs in October last year. However, since then, emergence of valuation concerns, FIIs turning aggressive in selling due to increasing expectations of further rate hikes by US Fed, Ukraine-Russia war and elevated commodity prices including oil above $100 a barrel, caused correction and volatility followed by smart recovery in last more than a month from March 2020 lows.
The broader markets outperformed frontline indices with the Nifty Midcap 100 and Smallcap 100 indexes rising 31 percent each in last one year. Most of sectors, barring oil & gas, participated in the run, with Energy, and Metal indices climbing more than 50 percent each.
Stocks that were amongst top four gainers in NSE 500 index in last one year include BSE which rallied 373 percent to Rs 902.45, Trident which surged 301 percent to Rs 54.9, and Gujarat Fluorochemicals which spiked 298 percent to Rs 2,917.6.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks:
After a robust rally from Rs 625 to Rs 1,020 currently the stock is witnessing rangebound activity. From last couple of weeks, it is trading within the range of Rs 870 to Rs 960 zone.
However, the medium term texture is still in to the bullish side. For the short term traders, 20-day SMA (simple moving average) would act as an immediate hurdle. If the stock sustains above 20 day SMA then we could expect a fresh uptrend rally till Rs 960-980.
On the flip side, below 20-day SMA or Rs 920, the stock is likely to retest the level of Rs 870-850.
Post sharp pullback rally, the stock is hovering between Rs 2,700 to Rs 3,000 price range. Currently, the stock consistently taking support near 50 and 20 day SMA.
In addition, higher bottom series formation on daily and weekly charts indicating further uptrend from the current levels. As long as the stock is trading above 50 day SMA or Rs 2850 the uptrend wave is intact. Above the same the stock will move up to Rs 3,100-3,185.
After a medium term price correction, the stock is witnessing rangebound activity. On the higher side, the stock is consistently facing resistance near Rs 58. For the bulls, Rs 58 would be the important breakout level to watch.
And if, the stock manages to close above the same, we could expect quick uptrend rally towards Rs 60-62. On the flip side, trading below Rs 52 may increase further weakness up to Rs 50-48.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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