The market remained strong for yet another session and created history by hitting a new milestone of 19,000 mark on the Nifty, on June 28, the monthly F&O expiry day. We have seen participation from all key sectors.
The benchmark indices saw a fresh record closing high on Wednesday. The BSE Sensex jumped 499 points to 63,915, while the Nifty50 rose 155 points to 18,972 and a formed bullish candlestick pattern on the daily charts with higher highs, higher lows formation.
The Bank Nifty also hit a fresh intraday all-time high above 48,500 and closed with over 200 points gains at 44,328, while the Nifty IT was up just 43 points at 28,843.
The Nifty Midcap 100 and Smallcap 100 indices gained for the third straight session, in line with the benchmarks, rising six-tenth of a percent and over third of a percent, respectively.
Stocks that recorded stellar performance and remained in focus included EPL, Central Depository Services (CDSL), and REC. EPL soared over 7 percent to Rs 221, the highest closing level since November 10, 2021 and formed a strong bullish candlestick pattern on the daily scale with above-average volumes after breakout of consolidation range. Also, the stock has seen a breakout of upward sloping resistance trendline adjoining highs of May 15 and June 20 this year.
Central Depository Services (CDSL) has decisively crossed 200-day EMA and formed healthy bullish candlestick pattern on the daily scale with above average volumes. The stock has also given a upward sloping resistance trendline breakout adjoining highs of February 1 and June 2 this year. It rallied over 4 percent to Rs 1,117 on the NSE.
REC was also in action, climbing 3.6 percent to end at a record closing high of Rs 166.75. The stock has seen robust volumes and formed a bullish candlestick pattern on the daily timeframe, making higher highs, higher lows, while it sustained above the key moving averages like 50-day and 200-day EMA. The stock has broadly in an uptrend since last June, despite intermittent correction and consolidation.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Since last 1 year or so the said counter has been consolidating between Rs 150-195 on a weekly scale. Recently it gave a clean breakout from the said range and currently sustaining well above it.
Additionally, on a daily scale price action is well above all key exponential moving averages which is a sign of strength.
On the indicator front, weekly stochastics has reversed from 70 levels exactly in tandem with the above-mentioned breakout zone (refer to the chart).
One can buy in small tranche in the range of Rs 218-222 and another in the range of Rs 210-213 for upside target of Rs 280 and the stop-loss would be around Rs 180 on daily closing basis.
In entire June 2023, CDSL made a solid base around the monthly central pivot range (refer to the chart) which was followed by a breakout and currently sustaining above the resistance level of Rs 1,080. Additionally, on a daily scale price action is well above all key exponential moving averages which is a sign of strength.
On the indicator front, the weekly RSI (relative strength index) has reversed from 50 levels which are echoing towards bullishness in coming sessions.
One can buy in a small tranche in the range of Rs 1,110-1,125 and another in the range of Rs 1,060-1,070 for an upside target of Rs 1,250 and the stop-loss would be around Rs 1,040 on a daily closing basis.
Since the last 12 months REC has already given 102 percent return from the low of Rs 82-83 and currently trading near Rs 166-167 levels. Though it looks lucrative due to recent up-moves one needs to be cautious since it is approaching near its historical top near Rs 168-169 levels.
On the indicator front, daily RSI is displaying some negative-regular divergence which hints towards some pullback in a few sessions.
As of now, no fresh longs are recommended. If already bought, then book profits in the zone of Rs 168-170 levels.
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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