The market recorded a fresh closing high on September 15 and clocked nearly 5 percent gains since the start of the current series. Hence, the possibility of some kind of consolidation can't be ruled out in immediate term, before getting back into another leg of the rally, possibly towards 20,500-20,600 on the Nifty50, provided the index holds 20,000-19,900 zone in the coming days, experts said.
The Nifty50 climbed 89 points to 20,192, and the BSE Sensex jumped 320 points to 67,839, while the Nifty Midcap 100 and Smallcap 100 indices gained 0.3 percent and 0.4 percent.
Key sectors participated in the rally with the Bank Nifty rising 231 points to 46,232, while the Nifty IT jumped 310 points to 33,355, and seems to be ready to fill the sharp gap down area created on April 18 last year.
Stocks that performed better than broader markets included UCO Bank, Triveni Turbine, and ICICI Prudential Life Insurance Company. UCO Bank hit a multi-year highs and settled at Rs 40.40 on last Friday, up 8.75 percent with significantly higher volumes. The stock has seen a breakout of falling resistance trendline and formed strong bullish candlestick pattern on the daily charts. It had three back-to-back strong sessions.
Triveni Turbine also saw a breakout of downward sloping resistance trendline and formed long bullish candlestick pattern with upper and lower shadows on the daily charts. The stock rose 8.7 percent to end at record closing high of Rs 433, with above average volumes.
ICICI Prudential Life Insurance Company jumped 4.5 percent to Rs 595 and formed healthy bullish candlestick pattern on the daily charts with strong volumes, after breakout of falling resistance trendline adjoining highs of July 13 and September 12 this year.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. With last week's gain, the stock has confirmed "rounding bottom" formation breakout at Rs 38 levels. This breakout is accompanied with huge volumes indicating increased participation.
The stock is well placed above its 20, 50, 100 and 200-day SMA (simple moving average) which reconfirms bullish trend. The daily "band Bollinger" buy signal suggests increased momentum. The daily, weekly and monthly RSI (relative strength index) is in positive terrain indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 53-60, with downside support zone of Rs 36-32 levels.
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. With Friday's high, the stock has registered a new high at Rs 444 levels representing bullish sentiments.
On the weekly chart, the stock has also confirmed a "consolidation range" (Rs 432-370) along with huge volumes indicating increased participation in the rally. Recently the stock recaptured its 20, 50, 100-day SMA and rebounded sharply indicating buying force. The daily, weekly and monthly RSI is in positive terrain indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 480-535, with downside support zone of Rs 420-390 levels.
ICICI Prudential Life Insurance
Recently the stock has retraced its prior up move (Rs 420-616) by 50 percent Fibonacci level (Rs 518) and rebounded sharply which remains a positive bias. This rally was observed along with rising volumes which show a strong comeback of bulls. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 650-680, with downside support zone of Rs 570-550 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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