Equity benchmarks extended gains for yet another session with the Nifty50 hitting a five-month high, while Bank Nifty ended at record closing high on May 15. Most of sectors gained momentum with the Nifty FMCG being top gainer with over 1 percent gains.
Benchmark indices had a gap-up opening. The BSE Sensex climbed over 300 points to 62,346, while the Nifty50 jumped more than 80 points to 18,399 and formed bullish candlestick pattern on the daily timeframe, with making higher high higher low formation.
We have also seen participation from the broader markets as the Nifty Midcap 100 index gained seven-tenth of a percent and the Nifty Smallcap 100 index rose 0.8 percent on positive breadth.
Stocks that were in action included EPL which rallied more than 5 percent to Rs 198.5, the highest closing level since January 10, 2022, and formed long bullish candlestick pattern with long upper shadow and small lower shadow on the daily charts, with strong volumes.
Godrej Properties gained 3.75 percent to close at Rs 1,388.5, the highest closing level since September 15 last year, and has seen formation of long bullish candlestick pattern on the daily scale with healthy volumes.
Zensar Technologies has seen a strong buying interest, rising 13 percent to Rs 384.15, the highest closing level since April 8 last year, and formed robust bullish candlestick pattern on the daily charts, with significantly higher volumes on last both trading days.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock post the downtrend since October 2021, prices created an upward Gap with volume surge on Apri 10, 2023 which can be considered as a Breakaway Gap which occurs at the beginning of the trend.
The stock has surpassed the key resistance of Rs 1,360 confirming a continuation to the upside. The stock has sustained well above the key moving averages of 50 & 200-day EMA (exponential moving average).
The RSI (relative strength index) has sustained well above 60 mark on the weekly as well as on the daily timeframe reflecting presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 1,650 where the stop-loss must be Rs 1,325 on the closing basis.
The stock in the prior week has broken the resistance of Rs 318 level which the prices respected since April 2022, this indicated an improving undertone of the prices.
The stock has formed a Cup & Handle Pattern indicating beginning of the trend to the upside. The stock also have shown a golden crossover between the 50 & 200-day EMA confirming the beginning of the trend to the upside.
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 435 with a stop-loss of Rs 350 on the closing basis.
After experiencing a downward trend since August 2020, the stock of EPL has shown signs of recovery as it emerged from a strong base that was formed starting from March 2022.
The recent breakout of Rectangle pattern indicates beginning of the trend to the upside. The breakout is confirmed as it was accompanied by higher volumes.
The Relative Strength Index (RSI) on the daily timeframe is constantly rising and have sustained well above 50 mark reflecting presence of strong momentum.
We recommend traders and investors to buy this stock for the target of Rs 235 with a stop-loss of Rs 185.
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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