The market recouped losses in late trade and closed a volatile session on a positive note on May 25, the expiry day for monthly derivative contracts, despite selling pressure in the global counterparts amid ongoing negotiations for a debt ceiling in the US.
The BSE Sensex gained nearly 100 points to settle at 61,873, and the Nifty50 jumped 36 points to 18,321, while the Nifty Midcap 100 index climbed 0.4 percent and Smallcap 100 index was up 0.1 percent.
The volatility cooled down, giving support to bulls. India VIX, which measures the expected volatility for the next thirty days in the Nifty, fell by 4.51 percent to 12.52 levels, from 13.11 levels.
Stocks that were in action included NCC which spiked 8.5 percent to Rs 118 and formed a healthy bullish candlestick pattern on the daily charts for the second consecutive session, with strong volumes. With Thursday's rally, the stock got back above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
Zomato shares gained 4.4 percent to settle at Rs 67.30, the highest closing level since December 2 last year, and formed a long bullish candlestick pattern on the daily scale with above-average volumes. The stock has given a nice breakout for the Mother candle of May 9, which is a positive sign, with trades above all key moving averages.
Tata Elxsi climbed 3.25 percent to Rs 7,261, the highest closing level since October 24, 2022, and the stock has seen a consolidation breakout with a long bullish candlestick pattern, with strong volumes. Also now the stock traded above all key moving averages, making higher highs higher lows formation for the second straight session.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The counter is into a rising channel from the last few sessions. Additionally, on the weekly charts, the stock has formed a Cup and Handle chart formation. Therefore, post-breakout move from the resistance zone, the bullish continuation rally is very likely to continue in the coming trading sessions.
For positional traders, Rs 64 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 72. However, if the stock closes below Rs 64, traders may prefer to exit from trading long positions.
After the remarkable up move of the last few weeks, the stock witnessed short-term correction from higher levels.
On weekly charts, the counter has reversed its trend from its important retracement zone. The formation suggests a revival of the uptrend from the current levels.
For the traders, Rs 112 would be the key support level to watch out for. Above this, the uptrend structure should continue until Rs 125.
After a sharp decline from the higher levels, the counter was in the accumulation zone where it was trading in a rectangle formation.
However, on the weekly charts, there is a range breakout in the counter along with decent volume activity, which suggests a new leg of a bullish trend in the near term.
Unless it is trading below Rs 7,000, positional traders can retain an optimistic stance and look for a target of Rs 7,780.
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