Cummins India, BEML, and Gland Pharma outperformed the broader markets in the previous session on May 13. The Nifty Midcap 100 index gained just four-tenth of a percent while the Smallcap 100 index fell 0.4 percent.
Cummins India has been a big star performer in the past several months and has maintained a higher highs, higher lows formation. The stock hit a record high of Rs 3,527.90 and closed the session with 2.95 percent gains at Rs 3,512.35 on the NSE. It has seen a formation of a bullish candlestick pattern on the daily charts, with above average volumes.
BEML is the second stock that has showed a sharp rise as it closed more than 14.5 percent higher in the previous session at Rs 3,676.45. The stock has formed a strong bullish candlestick pattern on the daily timeframe, with multi-fold jumps in volumes. Further, the stock traded above all key moving averages.
Gland Pharma has seen a consolidation breakout and rose 3.2 percent to Rs 1,764 on the NSE. The stock has formed a long bullish candlestick pattern on the daily charts, with above average volumes. Further, it closed above the 200-day EMA (exponential moving average) and 21-day EMA, and tested 50-day EMA during the day.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
Cummins India prices have given a breakout of the minor consolidation with above average volume, which is a good sign.
On the below chart, we can see that after April 22 not a single candle has given a close near the mid bands of the Bollinger bands and continued to give close near the upper end of the bands, which suggest strength in the trend.
Additionally, ADX (average directional index) is trading at 48 suggesting that good momentum is likely to continue.
In short, the overall tone for Cummins India is bullish. Use dips towards Rs 3,475 as a buying opportunity for a target of Rs 3,600-3,620 as long as Rs 3,420 holds on the downside.
On the daily chart in the previous session, BEML cloed near the previous swing high. A close above it can result in fresh buying. The stock is moving well by following upward sloping trendline. Also, prices which were trading in between the Ichimoku cloud have finally given a break on the upside, which is a positive signal.
In short, trend for BEML is positive. A breach above Rs 3,720 can push the price higher towards Rs 3,850 as long as Rs 3,580 holds on the downside.
In the previous session, the pharma sector shined throughout the day with Gland Pharma closing on a positive note.
On the daily chart, prices have given a breakout of the Triangle pattern. Along with this, MACD (moving average convergence divergence) has just shown bullish crossover but confirmation is still pending for which we need follow up buying.
We have shown Bollinger bands, wherein prices have given a close above mid bands and soon we can expect a move towards upper bands.
In short, the trend for Gland Pharma is bullish. A break above Rs 1,770 can lift the price higher towards Rs 1,823 as long as Rs 1,716 holds on the downside.
Follow Ashish Kyal on Twitter - @kyalashish
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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