Bulls further tightened their stronghold over Dalal Street, taking the Nifty50 above a three-and-a-half-month high on May 2. Overall, the benchmark indices traded higher for the sixth consecutive session.
The BSE Sensex climbed more than 240 points to 61,355, while the Nifty50 gained over 80 points to 18,148 and formed a small-bodied bullish candlestick pattern on the daily timeframe.
The Nifty50 has been making higher tops higher bottoms for the sixth straight session, while the Bank Nifty made higher highs for eighth consecutive day, rising 118 points to 43,352.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices also maintained momentum, climbing 1 percent and 0.7 percent respectively.
Stocks that performed better than broader markets included MTAR Technologies which jumped 4 percent to Rs 1,888 and formed long bullish candle on the daily scale for yet another session, with significantly higher volumes. The stock traded above all key moving averages (50, 100 and 200-day EMA - exponential moving average).
Devyani International shares climbed nearly 6 percent to Rs 170.60 and formed long bullish candlestick pattern on the daily charts after breaking the narrow range of last couple of weeks, with above average volumes. The stock also traded above all key moving averages.
Carborundum Universal has also decisively broken consolidation range and formed bullish candlestick pattern with making higher high higher low formation. The stock ended at record closing high at Rs 1,116, up 3.6 percent with above average volumes and traded above all key moving averages since April.
Here's what Rohan Shah of Stoxbox recommends investors should do with these stocks when the market resumes trading today:
Since December 2022, the stock has been trading in the well defined range of 300 points, range from Rs 1,800 to Rs 1,500 levels. This week stock has generated a breakout from the prolonged consolidation with strong volumes denotes bullish signal for short term trend.
Analyzing the long term chart, the stock has transited into Stage 2, with surge in volumes and supportive momentum which indicates a bullish bias also for medium term trend.
Hence in near term, we anticipate stock to trend higher towards Rs 2,050-2,100 zone, whereas, Rs 1,800 to act critical support, followed by 17,25.
The stock formed a bottom around Rs 134 on March 27, 2023, and post then stock has rebounded sharply highlighting a potential V shape pattern which is basically a bullish reversal pattern and forms at the bottom.
Post sharp upmove from Rs 134 to Rs 163.7, the stock turned sideways for 7 sessions trading in small range. The mentioned brief range witnessed a breakout with wide bullish candle indicates buyers' force and denotes resumption in prior trend.
Going ahead, the stock has an intermediate hurdle around Rs 174-175 zone, breakout from the same would trigger further rally in stock towards Rs 184. On the flip side, Rs 163-164 would act key support for the stock.
The stock has been in the strong uptrend since June 2022. The stock has formed successive higher highs and lows suggests a bullish trend in the stock. In this process, on the higher degree chart, in mid-April 2023, stock staged a breakout from potential bullish Cup & Handle price pattern denotes bullish bias.
As the prices are trading in uncharted territory, applying Fibonacci retracement, stock is expected to find critical resistance around the Rs 1,130-1,140 zone being 1.27 percent retracement.
A sustained move above the same shall open the gate for Rs 1,265 in the medium term, whereas on the flip side stock has key support around Rs 1,080, followed by Rs 1,050 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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