The mood at Dalal Street remained in the favour of bulls for fifth consecutive session on March 14. The BSE Sensex rallied more than 900 points to close at 56,500 levels, and the Nifty50 surged over 240 points to close above 16,870 levels, backed by banking & financials, technology and auto stocks. Positive global cues, falling oil prices and slowdown in FII selling boosted market sentiment.
The broader markets also gained but underperformed frontline indices. The Nifty Midcap 100 and Smallcap 100 indices settled 0.2 percent higher each.
Stocks that were in action include chemical company Deepak Nitrite, the biggest gainer in the futures & options segment, which advanced 7.66 percent to Rs 2,208 apiece, and electronic manufacturing services company Dixon Technologies which rallied 4.4 percent to Rs 4,337 per share.
IT company Happiest Minds Technologies was locked in 10 percent upper circuit at Rs 1,119.1, while multinational company Ingersoll Rand spiked sharply after a long time, rising 13.44 percent to Rs 1,530.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
After the recent A-B-C correction from the life high of Rs 3,000 level, Deepak Nitrite has bounced sharply from the lows of Rs 1,810.
Recently the stock managed to breach and sustain above the 20 day SMA (simple moving average - Rs 2004) and also formed a bullish Marubozu candle in Monday's session and ended above the previous Swing high (Rs 2,175).
RSI (relative strength index) indicator has crossed above the 50 mark indicating bullish momentum in the underlying.
Traders and investors should continue holding the stock and can expect upside towards Rs 2,400 followed by Rs 2,650. Downside support for the stock is placed at Rs 2,000 levels.
In the recent correction, the stock took support at Rs 4,000 level which is a multiple touch point level on the mid-term charts. In Monday's session, the stock managed to recapture above the 20 Day SMA (Rs 4187) with good volume build-up.
The RSI plotted on daily has been forming positive divergence since Mid-January 2022. We advise traders and investors to continue holding the stock, a break above Rs 4,450 can increase the momentum and can drive the prices higher towards Rs 4,660 and Rs 4,820 levels.
Downside support for the stock is now placed at Rs 4,120 level.
In the recent correction from the highs of Rs 1,580 the stock corrected nearly 40 percent and took support at the 50 percent retracement of the entire rally (projected from Rs 310-Rs 1,580).
On the daily charts the stock formed a bullish Marubozu candle and is now trading at its 4-week High. The RSI plotted on daily is showing positive divergence indicating strong momentum in the counter.
Traders and investors can continue holding the stock and expect up move towards Rs 1,240 and Rs 1,350 levels. Rs 1,020-1,030 zone will now act as a strong support for this counter.
On mid term charts, Ingersoll Rand is moving in an uptrend with higher highs and higher lows formation. Throughout the uptrend since November 2020 the stock has been taken support at its 20 week SMA (Rs 1,298) and moving higher.
In Monday's session the stock broke above the previous Swing high with an increase in volume activity. The RSI Indicator plotted on weekly has witnessed a range shift and is sustaining above the 50 mark since May 2021.
Traders and investors can hold, add and accumulate the stock for upside towards Rs 1,720 followed by Rs 1,830 levels. Rs 1,350 level will act as an important support on the downside.
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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