The market recouped most of the previous day's losses and closed down seven-tenth of a percent on August 4, taking healthy support at 19,300 on the Nifty50, which is likely to play a key role in market stability going ahead. Further, if it sustains above 19,500, then it can again make an attempt for an up-move towards 19,800, experts said.
The Nifty50 jumped 135 points to 19,517 and formed a bullish candlestick pattern on the daily charts, while the BSE Sensex climbed 481 points to 65,721. The broader markets also traded in line with the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.8 percent each.
The Bank Nifty also performed similarly, climbing 366 points to 44,880, while the Nifty IT was the star performer among key sectors, ending with 465 points or 1.55 percent gains at 30,436.
Stocks that traded better than the benchmarks included Zomato, LIC Housing Finance, and Delhivery. Zomato extended the up-move for the fourth consecutive session and rallied over 10 percent to Rs 95.40, the highest level since February last year. The stock has formed a long, bullish candlestick pattern on the daily charts, with multi-fold jump in trading volumes.
LIC Housing Finance has formed a bullish engulfing pattern on the daily charts, with significantly higher volumes. It rallied 8 percent to Rs 426.65, the highest closing level since September 16 last year and closed well above the 20-day and 50-day EMA.
Delhivery jumped 5.66 percent last Friday to Rs 420.75 and formed a long, bullish candlestick pattern on the daily charts, with above-average volumes. The stock has given a decisive close above the 200-day EMA as well as 20-day EMA, which is a positive sign.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
With last week's gain, the stock has decisively broken out its two years 'multiple resistance' zone of Rs 85 on a weekly closing basis. This breakout is accompanied with huge volumes indicating increased participation.
The daily Bollinger band buy signal indicates increased momentum. Recently the stock has recaptured its 20-day SMA (simple moving average) and rebounded very sharply indicating strong come of bulls.
On the weekly timeframe, the stock has confirmed trend reversal indicating bullish sentiments. The daily weekly and monthly RSI (relative strength index) is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 115-120 with downside support zone of Rs 87-80 levels.
For the second consecutive week, the stock has extended its up-move and also confirmed two years down-slopping channel breakout at the Rs 421 levels. This breakout is accompanied with huge volumes indicating increased participation.
It has also confirmed an inverse head-and-shoulder trend reversal, indicating a positive bias. On the weekly timeframe, the stock has confirmed trend reversal, indicating a bullish sentiment.
The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 460-485, with downside support zone of Rs 390-380 levels.
In the weekly time frame, the stock has confirmed a rounding bottom breakout at Rs 400 levels. Huge volumes on this breakout show significantly increased participation.
The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend. The daily and weekly RSI is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 460-490, with downside support zone of Rs 395-380 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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