The market had a good start to the April series and continued its upward journey for five days in a row, with the Nifty50 scaling the 17,600 mark on Thursday. The surprise halt in interest rate hike cycle by the RBI, and the buying in auto, financial services, metal, pharma and oil and gas stocks supported the rally.
The BSE Sensex gained more than 140 points to settle at 59,833, and the Nifty50 jumped over 40 points to 17,599. The broader markets also followed suit and traded better than benchmark indices.
The Nifty Midcap 100 and Smallcap 100 indices climbed 0.6 percent and 0.8 percent respectively on strong breadth. More than two shares advanced for every falling share on the NSE.
Stocks that have seen better performance compared to broader markets included M&M Financial Services which jumped over 5 percent to Rs 252 and formed long bullish candlestick pattern on the daily charts, with getting back above all key moving averages (21, 50, 100 and 200 EMA - exponential moving average).
Godrej Properties shares rallied 6.5 percent to Rs 1,125 and formed strong bullish candle on the daily scale with strong volumes, continuing uptrend for fifth consecutive session and recouping all its previous seven straight days' losses.
Astral also climbed 5 percent to Rs 1,399 and formed long bullish candle on the daily timeframe with above average volumes, moving closer to 50-day EMA (placed at 1,407).
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
On the daily scale, the stock is trading into a rising channel chart formation making the higher top and higher bottom constantly. As a result, all major technical trend indicators such as MACD (moving average convergence divergence) and ADX (average directional index) are strong and steady.
Therefore, upward movement from the current level is very likely to continue in the coming horizon. Unless it is trading below Rs 242, positional traders can retain an optimistic stance and look for a target of Rs 270.
On a broader time frame, the stock had been in a prolonged downtrend. Therefore it is currently into an oversold territory and available near to its demand area. The texture of the chart formation and technical indicator RSI (relative strength index) is indicating the current reversal formation could lead to a new leg of the uptrend from its demand zone.
In the near term, Rs 1,085 would be the immediate support zone for the stock. Above the same, the pullback rally will continue up to Rs 1,200.
After the short-term correction in the counter from the higher levels, the downward momentum has taken a pause. On the daily charts, the counter has formed a rounding bottom chart formation along with rising volume activity and it has reversed its trend from its support zone.
The formation suggests a revival of the uptrend from the current levels for further bullish movement. For the traders, Rs 1,350 would be the key support level to watch out. Above which the uptrend structure should continue until Rs 1,500.
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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