The market continued its uptrend for the second consecutive session with the Nifty50 reclaiming the 18,300 mark, led by positive Asian cues. Information technology, metal, pharma, oil and gas, and select FMCG stocks supported the sentiment.
The BSE Sensex rallied over 200 points to 61,964, while the Nifty50 jumped over 110 points to 18,314 and formed a bullish candlestick pattern on the daily scale, negating a lower-high-lower-low formation seen in the previous four sessions.
Bank Nifty underperformed the benchmarks as well as broader markets, shedding over 80 points to 43,885 and formed small-bodied bearish candlestick pattern on the daily scale.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices gained six-tenth of a percent.
Stocks that were in action on Monday included Elgi Equipments, which surged 18 percent to Rs 557.50 and formed a robust bullish candlestick pattern on the daily scale with significantly high volumes. In fact, the stock has seen not only downward sloping resistance trendline breakout but also a mother candle breakout on the daily charts.
Muthoot Finance shares climbed 8.6 percent to Rs 1,124 and formed a strong bullish candlestick pattern on the daily charts with healthy volumes. The stock has seen a decisive breakout of downward sloping resistance trendline adjoining highs of August 12, December 5 last year, and May 15 this year.
Mastek has formed yet another long bullish candlestick pattern on the daily scale with above average volumes. The stock gained 5.6 percent at Rs 1,994.55, the highest closing level since August 19 last year. It has given a nice Mother candle breakout in previous session.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock of Elgi Equipments sustaining near life-time high level indicates strong positive undertone of the stock. It has given a breakout of inverted head-and-shoulder pattern on the daily charts with high volume confirmation which confirms a bullish sentiment.
The stock has sustained well above the key moving averages of 50 and 200-day EMA (exponential moving average). The RSI (relative strength index) has sustained well above 60 on the weekly as well as on the daily time frame, reflecting presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 625 where the stop-loss must be Rs 520 on the closing basis.
On the monthly charts, the stock has formed a base near Rs 950–900 levels and bounced back. On the weekly charts, the stock has created a CIP (Change in Polarity) formation at Rs 950 level and started moving up indicating positive reversal for the coming future.
In the last session, it formed a bull sash candle pattern with huge volume support indicating strong positive strength of the stock.
The momentum indicator RSI has shown a breakout reflecting presence of positive momentum.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 1,220 with a stop-loss of Rs 1,075 on the closing basis.
The stock made a life time high at Rs 3,669 in October 2021 and then the stock started correcting and found support near Rs 1,500 – Rs 1,475 levels which is a 61.8 percent Fibonacci Retracement level of previous advance from Rs 165 – Rs 3,669 levels.
After taking support around Rs 1,500 level the stock started moving up since last two months and forming Higher Top, Higher Bottom formation indicating positive undertone of the stock.
On the weekly charts, we witnessed rounding bottom formation and huge volume spike for upward movement indicating strong demand at lower levels.
The relative strength index (RSI) on the daily timeframe is constantly rising and have sustained well above 65 mark reflecting presence of strong momentum.
We recommend traders and investors to buy this stock for a target of Rs 2,200 with a stop-loss of Rs 1,895.
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