The market continued its uptrend journey for yet another session with the Nifty50 scaling past the 19,800 mark, taking support at 19,750 throughout the day on October 11. Hence, as long as the index holds the 19,800-19,750 area, reaching 20,000 points seems possible in the coming sessions, whereas on other side, the 19,700-19,600 zone is likely to act as a support in case of correction, experts said.
The Nifty50 jumped 122 points to 19,811, and the BSE Sensex climbed 394 points to 66,473, while market breadth remained positive in the ratio of 2:1. The Nifty Midcap 100 and Smallcap 100 indices also participated in the run, rising half a percent and eight-tenth of a percent.
Among sectors, the Bank Nifty also maintained the upward journey, climbing 157 points to 44,517, while the Nifty IT index saw some profit-taking, falling 21 points to 32,548.
Stocks that performed better than the broader markets included Wipro, Laxmi Organic Industries, and Tanla Platforms. After consolidation for seven odd sessions, Wipro has seen a strong rally on Wednesday, rising 3.3 percent to Rs 421 on the NSE, with healthy volumes. The stock decisively climbed above all key moving averages now (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
Laxmi Organic Industries has seen a decisive breakout of downward sloping resistance trendline and clocked more than 11 percent rally to Rs 302, forming robust bullish candlestick pattern on the daily charts with multi-fold jump in volumes. Further, it traded above all key moving averages.
Tanla Platforms has also given a breakout of falling resistance trendline as well as seen a consolidation breakout on Wednesday. The stock rose 7 percent to Rs 1,104 and formed long bullish candlestick pattern with strong volumes, trading 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 4-5 trading sessions, Wipro has been respecting 200-day EMA (exponential moving average) in the form of multiple Doji candlesticks (refer to the chart). The previous trading session gained momentum.
Based on the parabolic stop and reverse indicator (black arc dots on the chart), it has signalled a buy exactly after reversing from 200 DEMA, which is looking lucrative.
Having said that, bullish momentum looks genuine since it is supported by decent volume. One can buy in the range of Rs 418–422, with a target of Rs 450 and a stop-loss of Rs 415 on a daily close basis.
Since the last 22 sessions, the said counter has been trading in a tight range between Rs 985 and Rs 1,070 points. In previous trading sessions, it has taken out the high of the said range and sustained above it.
The best part about the setup is that it has consolidated around 21 and 50-day EMA before breaking the said range, which is looking lucrative.
One can buy in the zone of Rs 1,090–1,105, and the stop-loss would be Rs 1,040 for an upside target of Rs 1,220 in the coming few weeks.
Recently, the said counter has gained momentum after hitting its crucial support of Rs 270. On a weekly scale, it has made Doji structure in the last week exactly near the middle band of Bollinger band. Currently, it has confirmed its bullish reversal with an appreciation of 6.7 percent on a weekly basis.
Having said that, the daily CCI (commodity channel index) has made a reverse divergence where CCI has made lower lows, but price action has not made lower lows. One can buy in the zone of Rs 298–302 with a stop-loss of Rs 277 for an upside target of Rs 340.
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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