The market bounced back sharply on December 7 after a steep correction in the previous two sessions amid the easing of Omicron fears and ahead of the RBI monetary policy decision.
The Sensex rallied nearly 887 points to close at 57,634, and the Nifty surged 264 points to end at 17,177, getting support from every sector.
Nifty bank, financial services and realty indices gained more than 2 percent each ahead of December 8 interest rate decision of the Monetary Policy Committee. Metal was the biggest gainer among sectors, rising 3 percent. IT, FMCG and auto gained 1-1.6 percent.
The broader markets also participated in the run, with the Nifty midcap 100 and smallcap 100 indices climbing over a percent each.
Stocks that were in focus included Axis Bank, which was the third biggest gainer in the Nifty50, rising 3.6 percent to close at Rs 687. National Aluminium Company (NALCO) was the top gainer in the futures & options segment, closing 7.10 percent higher to Rs 96.6.
Torrent Pharmaceuticals was also in action, registering 4.69 percent gains at Rs 3,074.60. Ramky Infrastructure gained momentum after several months of consolidation, freezing at 20 percent gains to close at Rs 210.05.
Here's what Mazhar Mohammad of Chartviewindia.in recommends investors should do with these stocks when the market resumes trading today:
The tradable bottom seems to be in place in this counter as it registered a higher top and higher bottom kind of bullish sequence.
This stock, however, is trading way below its 200-day exponential moving average whose value is placed around Rs 722.
Hence, sustaining above 670 levels should be the test of the 200-day moving average. Therefore, traders can hold on to their long positions and can also initiate fresh longs placing a stop below Rs 669 and look for a target placed around Rs 720.
This counter appears to have made a decent base in the last couple of trading sessions and seems to have embarked on a decent pullback rally on huge volumes. If it sustains above Rs 92, it can initially head to test its interim top of Rs 104.
On a decisive close above that, a higher target of Rs 118 can't be ruled out. Therefore, positional traders should buy into this counter with a stop loss below Rs 92 and look for an initial target of Rs 104.
Despite this counter witnessing a sharp spike on the back of relatively higher volumes, the larger trend seems to be sideways. For a sustainable upswing, the stock needs a fresh breakout on a close above Rs 3,250.
However, traders who already own this counter can hold for a target of Rs 3,240, whereas fresh buying should be considered only on a dip into the zone of Rs 3,000–Rs 2,950 with the stop loss below Rs 2,930.
After a prolonged underperformance —since its lifetime high of Rs 471 in the year 2010—this counter seems to have embarked on a medium-term uptrend. However, it needs to sustain above Rs 210, which seems to be a critical hurdle on long-term charts.
Moreover, this counter may remain vulnerable to profit-booking as it swiftly moved from the lows of Rs 146 in the last four trading sessions. If it consistently trades above Rs 210, eventually a higher target of Rs 270 can be expected.
For the time, fresh buying should be considered only on a dip between Rs 190 and 180 levels by placing a stop below Rs 175 on a closing basis.
Disclaimer: The views and investment tips expressed by 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.