Buying in banking and financial services stocks, and an up-move in global counterparts helped Indian equities rebound on March 21. The BSE Sensex gained nearly 450 points to close above 58,000, while the Nifty50 rose nearly 120 points to end tad above the 17,100 mark, forming a bullish candlestick pattern on the daily charts.
The bounce back was on expected lines after a back-to-back Doji pattern formation in previous sessions, but experts feel the sustainability of this rebound is important for further up-move.
The Nifty Midcap 100 and Smallcap 100 indices also regained strength, rising around six-tenth of a percent each on positive breadth. About three shares advanced for every two declining shares on the NSE.
Stocks that were in action included private sector lender CSB Bank which surged nearly 9 percent to Rs 246, the highest closing level since February 10 and formed a robust bullish candlestick pattern on the daily charts with strong volumes. With a single-day move, the stock climbed all key moving averages (9, 21, 50, 100 and 200-day EMA - exponential moving average).
HDFC AMC shares rallied 5 percent, the biggest single day gains August 16 last year, to close at Rs 1,764 and formed long bullish candle on the daily charts with above average volumes.
HDFC Life Insurance Company was also in action, climbing nearly 4 percent to Rs 483. The stock has formed bullish candle on the daily timeframe, with making higher high higher low formation.
Here's what Vaishali Parekh of Prabhudas Lilladher recommends investors should do with these stocks when the market resumes trading today:
The stock has corrected from Rs 275 levels in the recent past days, and has maintained near its 200 DMA (days moving average) which is around Rs 224 level. It is now breaking above the 50 EMA (exponential moving average) zone with a positive bullish candle pattern on the daily chart.
There has been multiple support around Rs 220 levels. The RSI (relative strength index) is also well placed and is on the rise, with potential to carry on the momentum even further to the upside.
We suggest buying and accumulating this stock for an upside target of Rs 270-275, with keeping a stop-loss near Rs 220 level.
The stock after the huge correction from Rs 2,300 zone has shown signs of bottoming out near Rs 1,630-1,650 zone and indicated a positive bullish candle with tremendous volume participation improving the bias. It is anticipated to carry on the momentum going ahead.
The RSI also has reversed from the highly oversold zone to signal a buy and has immense upside potential.
The chart looks very attractive and we suggest to buy and accumulate the stock for an upside initial target of Rs 1,960-1,975 with keeping a stop-loss of Rs 1,650.
The stock after the steep fall witnessed recently has been gradually on the decline, with currently indicating a big positive candle to show improvement in the bias. It is anticipated to continue with the positive move going ahead.
The RSI has strongly recovered from the highly oversold zone to signal a buy and with chart looking good, we suggest to buy this stock for an upside target of Rs 535-545 with keeping a stop-loss of Rs 460.
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