The consistent buying interest continued in the equity markets as the Nifty50 climbed another wall of 19,800 on closing basis on July 19. Further buying in banking & financial services, and index heavyweight Reliance Industries, supported the market, besides relentless FII inflow.
The BSE Sensex closed above 67,000 for the first time, rising over 300 points to 67,097, and the Nifty50 gained 84 points to end at record closing high of 19,833.
The broader markets also traded higher as breadth was in favour of bulls with 3:2 ratio. The Nifty Midcap 100 and Smallcap 100 indices were up 0.7 percent and 0.8 percent, respectively.
The Nifty Bank also saw record close of 45,669, up nearly 260 points, while Nifty IT saw some profit taking after recent run-up, falling 18 points to 31,354 and has seen a golden crossover with 50-day EMA crossing 200-day EMA on the higher side, which is a positive sign.
Stocks that were in action included Tata Teleservices (Maharashtra), Finolex Cables, and Sterling and Wilson Renewable Energy. Tata Teleservices (Maharashtra) has given a consolidation breakout and closed above 200-day EMA (Rs 78.94). The stock rose 10.4 percent to Rs 80.95 and formed strong bullish candlestick pattern on the daily charts with robust volumes.
Finolex Cables continued its uptrend for yet another session, rising 9 percent to Rs 978 and formed healthy bullish candlestick pattern on the daily charts with significantly higher volumes. The stock has given a breakout of downward sloping resistance trendline adjoining highs of May 8 and July 13, which is a positive sign.
Sterling and Wilson Renewable Energy jumped 6.6 percent to Rs 354 and formed strong bullish candlestick pattern on the daily charts with healthy volumes. In fact, the trading volumes remained strong for three days in a row. On Monday, the stock had given a strong breakout of long downward sloping resistance trendline adjoining highs of October 11, 2021 and June 14, 2023, which is a positive sign.
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:
Sterling and Wilson Renewable Energy
For the last 3 months, the said counter has been making base near its crucial support of Rs 290-300, which was also its monthly central pivot range.
From the Indicator perspective, the weekly RSI (relative strength index) has rebounded from 45 levels, echoing further bullish bias in the counter.
One can buy in a small tranche in the range of Rs 348-353 and another in the range of Rs 330-335 (if tested) with an upside target of Rs 425 and a stop-loss would be Rs 310 on a closing basis.
Recently, Finolex Cables has taken its historical high of Rs 937. Also, it is trading above all its major exponential moving averages thus proving its established uptrend.
On a daily scale, RSI has rebounded from 55 levels, echoing further bullish bias in the counter. One can buy in the range of Rs 970-980 with a target of Rs 1,050 and the stop-loss would be Rs 935 on a daily close basis.
Tata Teleservices (Maharashtra)
For the last 2 months, the said counter has been making base near its crucial support of Rs 70-72, which was also its monthly central pivot range (refer to the chart).
From the Indicator perspective, the daily MACD has given bullish crossover above zero-line which hints further upside in the counter. One can buy in a small tranche in the range of Rs 80-81 and another in the range of Rs 75-76 ( if tested) with an upside target of Rs 95 and a stop-loss would be Rs 71 on a closing basis.
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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