The last hour of buying helped the benchmark indices sustain their upward journey for the second consecutive session and, as a result, both the indices moved closer to record high levels on June 20. We saw an uptrend in most key sectors.
The BSE Sensex rose 159 points to 63,328, and the Nifty50 advanced 61 points to 18,817, while the broader markets stayed strong with the Nifty Midcap 100 and Smallcap 100 indices rising half a percent each.
Bank Nifty also showed similar trend like Nifty50, rising 133 points to 43,767, while India VIX, which measures the expected volatility for the next 30 days in the Nifty50, fell by 0.82 percent from 11.23 to 11.13 levels, giving comfort to bulls.
Stocks that were in action on Tuesday included Shriram Finance, Balkrishna Industries, and Dr Lal Path Labs. Shriram Finance rallied over 6 percent to Rs 1,560, the highest closing level since November 25, 2021. The stock has formed robust bullish candlestick pattern on the daily charts with above average volumes after breakout of horizontal resistance trendline adjoining multiple resistance points.
Balkrishna Industries has also formed strong bullish candlestick pattern on the daily scale with above average volumes as it jumped 4.5 percent to Rs 2,453.5, the highest closing level since May 26. The stock has been sustaining 26-day EMA since April 12, which also acted as a support many a times in last two months.
Dr Lal PathLabs has seen healthy volumes in last few sessions. The stock has maintained upward journey for third consecutive session, rising 4.8 percent to Rs 2,223 on Tuesday. In fact, it has given a close above 200-day EMA (exponential moving average - Rs 2,141), which is a positive sign.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock has experienced a significant uptrend from the COVID-19 lows until February 2021. Since then, it has been consolidating within a range of Rs 1,430 to Rs 1,130. Recently, there has been a surge in volume, albeit due to a block deal, followed by sustained buying activity.
In case of any dips, the gap area between Rs 1,400 and Rs 1,450 is expected to provide strong support. The stock has a potential target of Rs 1,900 to Rs 2,000.
However, considering the recent aggressive move, it may undergo a consolidation phase before further upward movement. As long as the gap area remains intact, buying on dips is recommended.
The stock has shown a robust uptrend since March 2020, rallying from Rs 600 to nearly Rs 2,700 levels. On the daily chart, it has successfully broken the pattern of lower highs and lower lows, indicating strength.
However, on the weekly chart, a breakout is still awaited. The stock is currently forming an Ascending Triangle pattern, and a breakout above Rs 2,480-2,490 zone is expected to confirm the resumption of the original uptrend.
During the COVID-19 pandemic, this stock emerged as a favourite in the pharma and healthcare sector, experiencing a remarkable rally from Rs 1,180 to Rs 4,200 levels in just 17 months. However, after such a significant move, stocks often undergo price or time corrections, and this stock has witnessed a substantial price correction.
Recently, it has found support at Rs 1,800-level and is showing an increase in trading volumes. On the weekly chart, a 'Double Bottom' pattern has formed, and for further momentum, a breakout above Rs 2,600 level is necessary.
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