The late rally helped the market extend uptrend for yet another session on February 15, driven by buying in auto, technology, select banking & financial services, and metal stocks.
On Wednesday, the BSE Sensex rose more than 240 points to 61,275, while the Nifty50 climbed 86 points to close tad above psychological 18,000 mark, for first time since January 24, forming yet another bullish candle on the daily charts with making higher high higher low for second consecutive day.
The broader markets also gained some strength in late trade on positive breadth. The Nifty Midcap 100 and Smallcap 100 indices climbed six-tenth of a percent and third of a percent respectively, while India VIX, the fear index fell by 4.4 percent to 12.86 level, making the trend more favourable for bulls.
Stocks that were in action included Borosil Renewables which gained more than 4 percent to Rs 463.4 on the NSE and formed Bullish Engulfing kind of pattern on the daily charts with above average volumes, after recent downtrend. The stock snapped two-day correction, but was still below short-to-long term moving averages.
Tejas Networks surged more than 10 percent to Rs 590, the biggest closing level since January 10 this year, and formed robust bullish candle on the daily charts with significantly higher volumes. The stock has broken downward sloping resistance trendline adjoining highs of October 10, 2022 and February 1, 2023, while it got back above all short term as well as long term moving averages.
Indiabulls Housing Finance has made a good rebound after four-day correction, rising 5.7 percent to Rs 117, and formed Bullish Engulfing candlestick pattern on the daily charts with above average volumes, which is a positive sign. It has given a nice breakout of long downward sloping resistance trendline adjoining December 30, 2022 and January 20, 2023.
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:
In spite of the fact that the said counter has witnessed massive beating after making the high of Rs 773 on October 10, 2022 which resulted in a 34 percent cut in stock price. Since last month the said counter looks like it has stabilized around Rs 540-550 zone.
Following are some important points that are making Tejas Networks a buy candidate:
a) Double bottom was seen on a daily scale along with bullish divergence on the daily scale of RSI (relative strength index) and MACD (moving average convergence divergence). (refer to the chart)
b) 5-month old trendline has taken thus confirming its bullish stance. In addition, the daily RSI trendline has also taken out (refer to the chart)
c) Doji's & Inverted Hammer is formed on a daily scale exactly near the double bottom and has vouched for a further up move in the counter
d) One can buy in the range of Rs 580-590 in a small tranche and another around Rs 555-565 (if tested again). Target is expected at Rs 650 with a stop-loss of Rs 540 on a daily closing basis.
The free fall which started from July 20, 2022 resulted in 38 percent cut in price. At current juncture, the said counter has formed bullish Butterfly pattern which is looking lucrative at current market price.
In addition, it has also formed Bullish Engulfing pattern exactly around potential reversal zone of Rs 440-450 thus confirming bullish stance in the counter.
From indicator perspective: Daily RSI has made bullish divergence along impulsive structure near oversold level of 30.
One can buy in the range of Rs 460-470 and target would be Rs 525 with a stop-loss of Rs 435 on daily close basis
The relentless fall which started from December 30, 2022 resulted in 33 percent cut in price. At current juncture, the said counter has formed Bullish Engulfing pattern exactly around 0.618 retracement of its previous rally which started from September 2022.
In addition, buying volume is also picking up from lower levels thus confirming bullish stance in the counter.
From indicator perspective: Daily RSI has made bullish divergence along impulsive structure near oversold level of 30.
One can buy in the range of Rs 115-118 and target would be Rs 135 with a stop-loss of Rs 107 on daily close basis.
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