The market closed sharply higher for the first time in six consecutive sessions on April 20, backed by auto, cement, FMCG, technology, pharma stocks, and index heavyweights Reliance Industries and HDFC twins.
The BSE Sensex gained nearly 600 points to close above 57,000, and the Nifty50 climbed 178 points to 17,136 levels, but there was a mixed trend in the broader space as the Nifty Midcap 100 index gained 0.75 percent and Smallcap 100 index declined 0.2 percent.
The market breadth was almost equal as 968 equity shares advanced against 953 declining shares on the NSE.
Stocks that were in action include ACC which was the biggest gainer in the futures & options segment with 7.38 percent gains at Rs 2,208; Biocon which was the third largest gainer in the derivatives segment with 4.3 percent rally at Rs 353.
Among others, Vinati Organics ended at record closing high of Rs 2,171, up 3 percent; and Fineotex Chemical also saw a record closing high at Rs 225 with 5.1 percent gains, while Astral climbed 3.1 percent to Rs 2,154.3.
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:
For the last 11 months or so Vinati Organics was trading in the range of Rs 1,750-2,184. At the current juncture, the counter has given a clean breakout on the weekly chart. From the ichimoku point of view the lagging span is free from all resistance along with the base line and conversion line following price action which is a sign of bullishness.
Last but not least weekly MACD (moving average convergence divergence) has given a positive crossover near zero line along with weekly RSI (relative strength index) hovering around 70 which adds more positive confirmation.
One can buy at current market price (Rs 2,171) with a target of Rs 2,700 and with plausible support at Rs 1,950.
The stock has given ichimoku cloud breakout above the previous high resistance with very high volumes. This indicates buying interest in the counter and hence the stock could continue its up move in the short term. However, the RSI on the daily chart has reversed from 60 levels which denotes more strength.
The support is placed around Rs 2,100 and potential target of Rs 2,500. The stop-loss for long positions can then be placed below Rs 2,000.
The stock is trading in an uptrend and has recently shown outperformance. The previous resistance of Rs 182 is now expected to become a support and hence any declines towards this support could be used as a buying opportunity.
Traders can look to buy the stock on dips around Rs 182-186 for a potential target of Rs 270 in the next couple of months. The stop-loss for long positions can then be placed below Rs 150.
Though the counter is making higher highs and lower lows since the last couple of weeks, immediate resistance is seen at Rs 364 which is also 200 daily moving average.
So one can wait till closes above Rs 364 on daily close basis. If it does then we expect a target of Rs 400 with a stop-loss of Rs 350.
Although ACC is making higher highs and lower lows since the last couple of weeks, at current juncture it is near its resistance of Rs 2,195 which is also 200 daily moving average.
So one can wait till closes above Rs 2,195 on daily close basis, if it does then we expect target of Rs 2,500 with a stop-loss of Rs 2,050.
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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