With strong support at 20,850-20,900 levels and sharp recovery from the day's low on December 13, ahead of the Federal Reserve meeting outcome, the market looks set to take a leap towards 21,000-21,100 levels again and, if it manages to hold 21,000, then there could be a possible move towards 21,500, experts said. The US Fed kept its key interest rate unchanged and offered hints for three rate cuts next year.
On December 13, the BEE Sensex advanced 36 points to 69,585, while the Nifty50 was up 20 points at 20,926 and formed a Doji candlestick pattern on the daily charts.
The broader markets outperformed the benchmark indices, as the Nifty Midcap 100 and Smallcap 100 indices rallied 0.9 percent each on positive breadth.
Stocks that recorded strong performance and better than broader markets included Tanla Platforms, Chalet Hotels, and SAIL. Tanla Platforms has seen healthy breakout of downward sloping resistance trendline adjoining highs of July 24 and October 20 this year, and formed a robust bullish candlestick pattern on the daily charts with significantly higher volumes. The stock jumped 18 percent to Rs 1,091 and, with Wednesday's rally, traded above all key moving averages (20,50,100 and 200-day EMA - exponential moving averages).
Chalet Hotels sustained the uptrend with robust volumes for three days in a row. The stock gained 4.6 percent at Rs 642.6 and formed a long bullish candlestick pattern on the daily cycle. It has also seen a breakout of falling resistance trendline adjoining multiple touchpoints and traded above all key moving averages, which is a positive sign.
SAIL hit a high of September 4, 2023 on Wednesday and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes. The stock rose over 3 percent to Rs 103.25, the highest closing level since April 19, 2022 and traded way above all key moving averages.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Since the last 3–4 weeks, SAIL has gained massive momentum from the low of Rs 88, approximately, and is currently placed near Rs 103 mark. Recently, SAIL has violated the 2.6-year-old bear trendline, which is looking lucrative to buy.
On the indicator front, both DMI (directional movement index) and RSI (relative strength index) weekly are looking in bullish mode, thus confirming our bullish stance at the counter.
Thus, one can buy in the zone of Rs 100–105 for a target of Rs 115, with a stop-loss of Rs 96 on a daily close basis.
After consolidating for 3–4 weeks between Rs 900 and Rs 970, in the previous trading session, it gave a clean breakout from the said range and closed near the Rs 1,090 mark.
The breakout looks genuine since it is accompanied by massive volume. Thus, one can buy a small tranche in the zone of Rs 1,050–1,100 and another in the zone of Rs 1,000–1,025 for an upside target of Rs 1,225, and the stop-loss would be Rs 975 on a daily close basis.
In the previous trading session, the said counter has taken out its previous swing high of approximately Rs 610 and is currently placed near Rs 640 mark. Since price action is consistently trading above all key averages, this is a sign of further strength in the counter.
On indicator front, the RSI (relative strength index) has reversed from 50 levels, thus affirming our bullish stance in the counter. Thus, one can buy in the zone of Rs 635–645 with a target of Rs 680 and stop-loss of Rs 620 on a closing basis.
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