The market rebounded smartly on May 8 and closed at the highest level in the current year as banking and financial services, auto, FMCG, and technology stocks saw buying interest. The BSE Sensex rallied more than 1 percent and 700 points to close at 61,764.
The Nifty50 surged nearly 200 points to 18,264 and formed a bullish candlestick pattern on the daily charts with making higher top higher bottom formation, while the Nifty Midcap 100 and Smallcap 100 indices gained around 1 percent each.
Bank Nifty was the star performer among sectors, rising 1.46 percent and formed a bullish candlestick pattern on the daily scale.
Stocks that participated in the market run and performed better than broader markets included Tata Motors which jumped 5 percent to Rs 500.5, the highest closing level since February 15 last year and formed strong bullish candlestick pattern on the daily charts with above average volumes.
Bajaj Finance shares gained 4 percent to settle at Rs 6,658, the highest closing level since December 19 last year, and formed long bullish candle on the daily scale with above average volumes. The stock maintained higher highs higher lows for third consecutive session.
CSB Bank has also formed bullish candlestick pattern on the daily scale, with making higher high higher low formation, as it rose over 4 percent to Rs 291.35, but still traded within the range of April 28.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock has shown a bounce to the upside from its key support around Rs 5,600 level. The recent breakout of Double Bottom Pattern Indicates beginning of the trend to the upside.
Prices are continuously hovering near the Upper Bollinger band which reflects the rising volatility of the prices for an up move.
The momentum Indicator RSI (relative strength index) has sustained well above 50 mark on daily as well as on the weekly timeframe reflecting presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 7,250 where the stop-loss must be Rs 6,420 on the closing basis.
The stock in the mid of April 2023 has broken the resistance of Rs 275 level which the prices respected since November 2021. This indicated an improving undertone of the prices.
Around the same level of Rs 275 a change in the polarity of the prices can be witnessed.
The stock is also trading above its key moving averages of 50 & 200-day EMA (exponential moving average) which confirms the reversal to the upside.
The momentum indicator RSI has sustained well above 50 mark on daily as well as on the weekly timeframe reflecting presence of positive momentum.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 320 with a stop-loss of Rs 275 on the closing basis.
The stock has got into the structure of Higher Highs, Higher Lows for the first time post the high created in the November 2021. The recent breakout of Rectangle pattern in the early April 2023 indicates beginning of the trend to the upside.
The breakout is confirmed as it was accompanied by higher volumes and Bullish gap.
The relative strength index (RSI) on the daily timeframe has shown a bullish reversal which reflected the rising momentum in the prices.
We recommend traders and investors to buy this stock for the target of Rs 540 with a stop-loss of Rs 485.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
