The Nifty started the new month on strong note by decisively surpassing the 19,400 mark on September 1, on the back of a healthy manufacturing data and broad-based buying.
The index is close to 19,450-19,500 area and if it goes past it, the Nifty can move to 19,600-19,650, with support at 19,300–19,250, experts said.
The Nifty, which gained jumped 182 points to close at 19,435, formed a bullish candlestick, which resembles a Bullish Engulfing pattern, on the daily charts. The Sensex closed 556 points higher at 65,387.
The broader markets also joined the rally, continuing uptrend for the fifth consecutive session.
The Nifty midcap 100 and smallcap 100 indices gained 0.8 percent and 1.2 percent, while VIX, which measures the expected volatility in the Nifty over the next 30 days, fell 5.8 percent to 11.37, indicating a favourable trend for the bulls.
MTAR Technologies, MCX India and GAIL India were among the stocks that outperformed the market.
MTAR Technologies, which saw a decisive break of the downward sloping resistance trendline in the previous session, extended the up-trend on September 1 with 10.6 percent gains. The stock formed a strong bullish candlestick on the daily charts with robust volumes, continuing the uptrend for the third straight session.
MCX India rallied 8 percent to Rs 1,824 with strong volumes, extending the upward journey for the fifth straight day to form a bullish candlestick on the daily scale. The stock has decisively broken out of the horizontal resistance trendline adjoining the highs of December 20 and July 24, which is a positive sign.
GAIL India jumped 5.5 percent to Rs 121.35, the highest closing since November 31, 2018. It formed a long bullish candlestick on the daily chart with strong volumes after breaking out of the downward sloping resistance trendline adjoining highs of July 31 and August 24, trading above all key moving averages.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes today:
The stock is in a strong uptrend, forming a series of higher tops and bottoms across all time frames, indicating a sustained trend.
The stock also confirmed "Rounding Bottom" formation on a weekly closing basis, which reconfirmed the bullish sentiment. The breakout was accompanied by huge volumes, indicating increased participation in the rally.
Recently, the stock recaptured its 20-day simple moving average (SMA) at Rs 2,269 and rebounded sharply, indicating positive bias. The daily, weekly and monthly relative strength index (RSI) is in positive terrain and quoting above the 50 mark, which points to sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,950-3,200, with a downside support of Rs 2,480-2,350.
With 15 percent gains in the week gone by, the stock decisively surpassed its almost two-year "multiple resistance" of Rs 1,700 on a closing basis. The breakout was accompanied by huge volumes, which indicates increased participation.
The stock is well placed above its 20, 50, 100, and 200-day SMAs, reconfirming the bullish sentiment. The daily and weekly "Bollinger band" buy signals indicate increased momentum.
Investors should buy, hold, and accumulate this stock with an expected upside of Rs 2,100-2,250. Downside support is Rs 1,700-1,650.
For the past couple of weeks, the stock has been well-placed and sustained above the two-year breakout zone of Rs 113. With the September 1 rally, the stock regained upside momentum along with huge volumes, indicating increased participation.
The stock also witnessed "horizontal channel" formation breakout at Rs 113, signalling the resumption of the uptrend. The daily, weekly and monthly RSI is in positive terrain and above the 50 mark, indicating sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 135-140, with a downside support zone of Rs 115-110 levels.
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