The market managed to recover half of its previous day's losses and closed with half a percent gains, making a good start to the October F&O series on September 29.
In fact, the Nifty50 has formed a bullish harami pattern on the daily charts, the bullish reversal pattern as Friday's bullish candlestick formation was seen inside the long bear candle formed on Thursday, the last day of the monthly F&O expiry for September series, indicating the chances of further uptrend in the coming sessions if the index decisively gets back above 19,750.
The Nifty50 jumped 115 points to 19,638, and the BSE Sensex surged 320 points to 65,828, while the broader markets gained around a percent on positive breadth.
Stocks that fared better than the broader markets included NTPC, Metro Brands, and Glenmark Pharma. NTPC has seen a breakout of horizontal as well as falling resistance trendline, along with trading well above all key moving averages, which is a positive sign. The stock gained 3.6 percent to end at record closing high of Rs 245.5 and formed a bullish candlestick pattern with long upper shadow on the daily charts, with healthy trading volumes.
Metro Brands, too, has witnessed a downward sloping as well as horizontal resistance trendline, with above-average volumes. The stock ended at a record closing high of Rs 1,126, up 3.5 percent on the NSE and formed bullish candlestick pattern with long upper shadow on the daily timeframe, indicating some profit-taking at higher levels.
Glenmark Pharma was the biggest gainer not only in the Nifty500 index but also amongst F&O stocks. The stock jumped more than 10 percent to Rs 855.5, with robust volumes. In fact, the trading volume was highest on the daily basis since May 2021. It has formed strong bullish candlestick pattern on the daily scale, with trading above all key moving averages.
Here's what Foram Chheda of ChartAnalytics recommends investors should do with these stocks when the market resumes on Tuesday:
Metro Brands, a mid-cap footwear company, recently broke through a significant horizontal resistance level, indicating a potential upward movement. After hitting a low of around Rs 738 in February, the stock rebounded above the 50-day, 100-day, and 200-day moving averages, facing resistance near Rs 1,110 and entering a consolidation phase.
It retraced to find support near the 50-day moving average before breaking the Rs 1,110 resistance, presenting a buying opportunity. The Parabolic SAR (PSAR) remains in a buy mode.
With higher tops, higher bottoms, and a PSAR buy signal, the stock shows potential for a 5.30 percent price increase from Friday's close. Caution is advised if the price dips below Rs 1,067.
Glenmark experienced a recovery, following a low near Rs 370 levels in January. It surpassed key moving averages (50-, 100-, and 200-day MA), signaling a potential bullish trend. The uptrend paused near Rs 830 levels in July, followed by a corrective decline, finding support at the 50-day MA before resuming the upward trajectory.
This pattern of higher highs and higher lows, coupled with the bounce from the 50-day MA, suggests a sustained upward momentum. Holders are advised to maintain their positions, setting a trailing stop-loss at Rs 774, and consider a higher target around Rs 927.
NTPC stock underwent a 9-month consolidation phase, finding support at key moving averages (50-day, 100-day, and 200-day MA). In June, it broke out near Rs 180 levels, initiating an uptrend marked by higher highs and higher lows. The rally paused at Rs 245 levels recently, leading to a retracement and subsequent consolidation.
Currently, the stock is poised for a breakout from this consolidation, presenting a buying opportunity. Consider entering a new position with a target around Rs 260. It's advisable to exit if the price drops below Rs 235.
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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